markdown

noun mark·down \ ˈmärk-ˌdau̇n \

Updated on: 14 Apr 2018

Definition of markdown

1 : a lowering of price

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

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Recent Examples of markdown from the Web

Quartzreporter Marc Bain tweeted last month that Gvasalia himself had said that markdowns were an indication of overproduction, which is something that seems to be happening more and more to his own label.

— sarah spellings, The Cut, "Is Fashion’s Trendiest, Troll-iest Brand Dead or Not?," 29 Mar. 2018
It’s hard to find huge markdowns on Disney tickets.

— cleveland.com, "Disney vacation pros dish up budgeting tips for trips," 28 Mar. 2018
Shoppers throughout the country headed for Toys R Us and Babies R Us stores in the morning expecting to see markdowns on dolls, games, baby supplies and all other merchandise.

— USA TODAY, "Toys R Us liquidation sale delayed at least until Friday," 22 Mar. 2018
But in November, the company wrote down the value of Ebuys on its balance sheet by $52.7 million after taking a loss on the business because of huge markdowns to clear inventory.

— imani moise, WSJ, "DSW Abandons E-commerce Start-Up Ebuys," 13 Mar. 2018
Most of the merchandise is currently at least half off, with some markdowns as low as 75%!

— meghan overdeep, Southern Living, "Home Depot’s Sale on Christmas Decorations Will Get You in the Holiday Spirit—Even in March," 12 Mar. 2018
The Presidents' Day mattress deals may have come and gone, but there's plenty of stylish clothing still on markdown as retailers make room for spring and summer clothes.

— megan gustashaw, GQ, "14 Wardrobe Upgrades to Buy While the End-of-Season Sales Are On," 24 Feb. 2018
Check back each week for the latest must-have activewear markdowns and special offers that will keep your workout gear fresh and your wallet happy.

— tiffany dodson, SELF, "30 Fitness Deals You Can’t Miss This Week," 26 Jan. 2018
Buyers can wait until final markdowns for staple, statement items since several designers are likely to carry variations of these pieces, Goreski and Austin said.

— debbie carlson, chicagotribune.com, "4 pro tips for sale shopping," 15 Dec. 2017

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

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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