markdown

noun mark·down \ ˈmärk-ˌdau̇n \

|Updated on: 3 Aug 2018

Examples: markdown in a Sentence

Definition of markdown

1 : a lowering of price

2 : the amount by which an original selling price is reduced

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See markdown defined for kids

Recent Examples of markdown from the Web

First launched back in 2015, Prime Day has become one of the biggest sales of the year, with major markdowns on everything from electronics to fitness gear to smart home gadgets (last year, the Echo was one of the most popular items sold).

— Health.com, "What's Amazon Prime Day? Everything You Need to Know About the Biggest Sale of the Year," 28 June 2018
Don’t forget to check outlet-style sites, like the REI Garage (side note: a lifetime membership at REI runs you $20 and gets you a discount and access to special markdowns, in addition to other perks).

— gray chapman, SELF, "Here's How to Dress for a Hike Without Sacrificing Style," 12 Apr. 2018
Some stores even have markdowns of 50-70 percent, though inventory for many liquidation sales differs in many stores.

— karen mizoguchi, PEOPLE.com, "Toys 'R' Us Will Close All of Its Doors Forever This Friday After More Than 70 Years," 25 June 2018
Some stores have markdowns of 60 to 80 percent and others are at 70 to 90 percent.

— sarah brookbank, Cincinnati.com, "Don't miss out: Toys R Us stores close for good on Friday," 25 June 2018
And of course, for the dedicated follower of fashion, nothing beats the biannual Net-a-Porter markdown.

— diana tsui, The Cut, "The Outnet Sale Is Full of Good Deals on Summer Clothes," 25 May 2018
In addition to markups, brokers will also have to disclose markdowns, the haircuts investors have to take when selling bonds prior to their maturity.

— andrew ackerman and heather gillers, WSJ, "Starting Next Week You Can See Brokers’ Profits From Bond Sales," 9 May 2018
Asked whether the discounting nature of Bon-Ton made for a slow start to the sale until markdowns reached levels not typically seen there, Carpenter said his firm's models are based on selling a certain amount of merchandise at each discount level.

— paul gores, Milwaukee Journal Sentinel, "About 40% of inventory has been sold so far in Bon-Ton's going-out-of-business sale," 29 June 2018
Note: Club Monaco rarely has sale-on-sale markdowns as good as this.

— health editors, Health.com, "The Fourth of July Sales That Are Actually Worth Shopping," 28 June 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'markdown.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of markdown

1880

in the meaning defined at sense 1

See Words from the same year

NEW! Time Traveler

mark down

verb

Definition of mark down

transitive verb

: to put a lower price on

See mark down defined for kids

Examples of mark down in a Sentence

marked down all seasonal goods immediately after the holidays

First Known Use of mark down

1859

in the meaning defined above

See Words from the same year

NEW! Time Traveler

mark down Synonyms

Financial Definition of MARKDOWN

markdown

noun

What It Is

Markdown refers to the negative spread between the price a broker charges a client for a security and the highest price at which that security is sold between brokers. It is the opposite of markup.

How It Works

If a broker wishes to increase his sales volume in a security or set of securities, he may choose to sell them at markdown prices. In other words, if a broker sells a security to a client at a lower price than the highest bid (selling) price in the securities market among brokers, the price is a markdown price.

To illustrate, suppose a broker sells shares of XYZ stock to his clients at $20 per share. He originally purchased the shares in the broker market at $40 per share. Therefore, the markdown on the shares he sells is -$20 ($20-$40).

Markdown should not be confused with markup, which is the positive spread between the lowest bid price in the brokers market and the higher price a broker charges to clients.

Why It Matters

The motivation for a broker to sell securities at markdown prices is to kindle trading activity among clients in the hopes that the multiple commissions on a higher sales volume will offset money lost in the negative spread.

Source: Investing Answers