Discounts

Discounts is a business term with four distinct meanings: 1) Original Issue Discounts, 2) Incentives for customers to purchase, 3) Early payment reduction and 4) Discounted cash flows. All four meanings have the same underlying element of getting more for less.

Discounts – Various Meanings in Business

Discounts

The term ‘discounts’ is a broad and varied meaning word when it comes to use in business.  It literally has four distinct definitions.  Each definition is used within a certain context of business.  The first and most dollar expensive use is with original issue discount related to bonds in the market.  The second use and most common is as an incentive in business.

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