markdown

noun mark·down \ ˈmärk-ˌdau̇n \

|Updated on: 22 Jun 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

See markdown defined for English-language learners

See markdown defined for kids

Recent Examples of markdown from the Web

Go often: During the final days, markdowns will increase.

— kelly tyko, USA TODAY, "How low will prices go? Toys R Us stores enter final days with new liquidation markdowns," 12 June 2018
Lovell said explaining markdowns become available as dealers clear out inventory to help introduce 2019 editions.

— jose r. gonzalez, Houston Chronicle, "Houston Summer Boat Show expects post-Harvey surge," 12 June 2018
From Friday, May 25, until Monday, May 28, score an additional 10 percent off previous markdowns at Furla.

— Glamour, "The Best 2018 Memorial Day Sales to Shop This Weekend," 22 May 2018
Beach Bunny Swimwear: Take up to 60 percent off all new online markdowns, 5/18-5/28.

— tiffany dodson, SELF, "The Best Memorial Day 2018 Beauty and Fashion Sales From Your Favorite Brands," 24 May 2018
Expect lots of markdowns from All-Clad, Anthropologie Home, Le Creuset, and more.

— bon appétit, Bon Appetit, "Memorial Day 2018: All the Kitchen Sales to Shop This Weekend," 24 May 2018
Researchers have found that shoppers are easily befuddled by percentages and fractions, and thus prone to miscalculating the benefits of markdowns.

— charlotte cowles, The Cut, "How Can I Shop a Sale Without Losing My Head?," 18 May 2018
This month is REI’s 80th anniversary and to celebrate they’re having the biggest sale of the year, featuring markdowns on nearly 2,000 products.

— the editors, Outside Online, "Sweet Deals on Gear That Will Help You Travel the World," 18 May 2018
But the Durant Discount Days are coming to an end, and there will be no such markdown for the Warriors this offseason.

— matt bonesteel, chicagotribune.com, "Kevin Durant reportedly will opt out of his Warriors deal — so he can re-sign," 11 Apr. 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