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Decrease and Markdown

noun

  • A change downward.
    • usage: "there was a decrease in his temperature as the fever subsided"; "there was a sharp drop-off in sales"
  • A process of becoming smaller or shorter.
  • The amount by which something decreases.
  • The act of decreasing or reducing something.

verb

  • Decrease in size, extent, or range.
    • usage: "The amount of homework decreased towards the end of the semester"; "The cabin pressure fell dramatically"; "her weight fell to under a hundred pounds"; "his voice fell to a whisper"
  • Make smaller.
    • usage: "He decreased his staff"

Markdown is a markdown is the difference between the market price of a security and the price you receive if you sell that security to a broker/dealer in the over-the-counter (OTC) market. A markdown is comparable to the commission you would pay for selling the security through your broker, though the cost of the markdown, unlike a broker's commission, is not stated separately on a confirmation statement. A markdown is determined, in part, by the demand for securities of a certain type in the marketplace, since a broker/dealer may charge a smaller markdown if the security can be resold at a favorable markup. The term markdown also refers more generally to a price reduction on retail products and certain securities that a seller wants to unload and will sell at less than the original offering price.