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noun mark·down \ ˈmärk-ˌdau̇n \

Updated on: 26 Jul 2017

Definition of markdown

1 :a lowering of price

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

See markdown defined for English-language learners

See markdown defined for kids

Recent Examples of markdown from the Web

Guests also will find markdowns at the indoor Pewabic store.

— greg crawford and ashley zlatopolsky, Detroit Free Press, "The week's best: Top things to do Aug. 10-16," 10 Aug. 2017
Regardless of the almost-nonexistent markdown, however, the six Birkins and four Kellys—all of which were used and ranged in age from 3 to 26 years old—had all been purchased by Thursday.

— andrea park, Teen Vogue, "Saks Off Fifth Put Hermès Birkin Bags on Sale—for 3 Cents Off the List Price," 21 July 2017
Amazon's portable Tap speaker will be selling for $79.90, a $50 markdown.

— lisa eadicicco, Time, "How to Pick the Amazon Echo That's Right for You," 10 July 2017
The Principal decision implies that T. Rowe Price did a similar markdown on its much bigger stake.

— jen wieczner, Fortune, "Uber’s Stock Was Sinking Before Investors Ousted CEO Travis Kalanick," 23 June 2017
But for my money, the city’s saving grace is its three locations of United Apparel Liquidators, the only-in-the-South off-price retailer that sells Chanel, Prada and other luxury goods at ridiculous markdowns.

— steven kurutz, New York Times, "We Settle a Big Fashion Rivalry: Nashville vs. Columbus," 17 May 2017
That will aid Michael Kors’s own efforts to cut markdowns.

— stephanie hoi-nga wong, Bloomberg.com, "Michael Kors Faces Tougher Market After Coach-Kate Spade Merger," 10 May 2017
That suggested that the attempt to control inventory aimed at reining in steep markdowns may be succeeding, said Chen Grazutis, an analyst at Bloomberg Intelligence.

— stephanie hoi-nga wong, Bloomberg.com, "Coach's Kate Spade Deal Is Next Step in Quest for Fatter Margins," 8 May 2017
There's an easy way to figure out if items are in a final markdown.

— lauren smith, House Beautiful, "11 Home Depot Shopping Secrets You Probably Didn't Know About," 16 Sep. 2016

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

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

mark down Synonyms

Synonyms

attenuate, break, cheapen, depress, devaluate, devalue, downgrade, lower, depreciate, reduce, sink, write down, write off

Antonyms

appreciate, enhance, mark up, upgrade

Related Words

debase, demonetize; underestimate, underprice, underrate, undervalue; abridge, compress, contract, de-escalate, deflate, downsize, dwindle, lessen, moderate, shrink

Near Antonyms

bloat, blow up, inflate; overestimate, overprice, overrate, overvalue; add, aggrandize, amplify, augment, balloon, boost, compound, dilate, enlarge, escalate, expand, extend, heighten, increase, maximize, multiply, raise, swell, up

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