deep discount

deep discount
A loan stock issued at a discount of more than 15% of the amount on redemption or, if less, at a discount of more than 1/2% for each completed year between issue and redemption. The discount will be treated as income accruing over the life of the stock. For example, a deep-discount bond might be a four-year loan stock issued at £95 for every £100 nominal (the discount exceeds 1/2% per annum) or a 25-year loan stock issued at £75 for every £100 nominal (the discount exceeds 15% in total). On deep-discount securities the discount is normally chargeable to tax. There are new proposals to tax all discounts.

Accounting dictionary. 2014.

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  • deep-discount — UK US noun [C] ► a large or greater than usual reduction in price: »Some companies are offering deep discounts to attract shoppers. »The book is now being sold for $17.99, a deep discount from the $34.99 suggested list price. at a deep discount… …   Financial and business terms

  • deep-discount — deepˈ discount adjective (of financial securities) sold at a discount, earning low interest, and providing merely capital gain • • • Main Entry: ↑deep …   Useful english dictionary

  • deep discount — A discount to face value that is large enough to encourage a full take up of a rights issue. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • deep discount — A large discount for a financial instrument. The condition that exists when a financial instrument is trading at a market price that is well below its par value. May also be used to refer to those securities selling at prices well below par.… …   Financial and business terms

  • deep discount — A loan stock issued at a discount of more than 15% of the amount on redemption or, if less, at a discount of more than 1 2% for each completed year between issue and redemption. The discount will be treated as income accruing over the life of the …   Big dictionary of business and management

  • deep discount security — deep discount security/deep discount bond A security issued at a price well below its face value (either more than 15% in total or at a discount of more than 0.5% per annum). It will therefore have a low coupon. Much, if not all of the return to… …   Law dictionary

  • deep discount bond — deep discount security/deep discount bond A security issued at a price well below its face value (either more than 15% in total or at a discount of more than 0.5% per annum). It will therefore have a low coupon. Much, if not all of the return to… …   Law dictionary

  • Deep Discount Broker — An agent that mediates sales and exchanges between securities buyers and sellers at even lower commission rates than those offered by a regular discount broker. As one might expect, deep discount brokers also provide fewer services to clients… …   Investment dictionary

  • Deep-discount bond — A bond issued with a very low coupon or no coupon and selling at a price far below par value. When the bond has no coupon, it s called a zero coupon bond. The New York Times Financial Glossary * * * deep discount bond UK US noun [C] ► FINANCE,… …   Financial and business terms

  • deep-discount bond — A bond issued with a very low coupon or no coupon that sells at a price far below par value. A bond that has no coupon is called a zero coupon bond. Bloomberg Financial Dictionary * * * deep discount bond UK US noun [C] ► FINANCE, STOCK MARKET a… …   Financial and business terms

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