- A loan stock issued at a discount of more than 15% of the amount on redemption or, if less, at a discount of more than 1/2% for each completed year between issue and redemption. The discount will be treated as income accruing over the life of the stock. For example, a deep-discount bond might be a four-year loan stock issued at £95 for every £100 nominal (the discount exceeds 1/2% per annum) or a 25-year loan stock issued at £75 for every £100 nominal (the discount exceeds 15% in total). On deep-discount securities the discount is normally chargeable to tax. There are new proposals to tax all discounts.
Accounting dictionary. 2014.
Look at other dictionaries:
deep-discount — UK US noun [C] ► a large or greater than usual reduction in price: »Some companies are offering deep discounts to attract shoppers. »The book is now being sold for $17.99, a deep discount from the $34.99 suggested list price. at a deep discount… … Financial and business terms
deep-discount — deepˈ discount adjective (of financial securities) sold at a discount, earning low interest, and providing merely capital gain • • • Main Entry: ↑deep … Useful english dictionary
deep discount — A discount to face value that is large enough to encourage a full take up of a rights issue. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 … Law dictionary
deep discount — A large discount for a financial instrument. The condition that exists when a financial instrument is trading at a market price that is well below its par value. May also be used to refer to those securities selling at prices well below par.… … Financial and business terms
deep discount — A loan stock issued at a discount of more than 15% of the amount on redemption or, if less, at a discount of more than 1 2% for each completed year between issue and redemption. The discount will be treated as income accruing over the life of the … Big dictionary of business and management
deep discount — /ˌdi:p dɪskaυnt/ noun a very large discount ▪▪▪ ‘…when it needed to make its financial results look good, it shipped a lot of inventory. It did this by offering deep discounts to distributors’ [Forbes] … Dictionary of banking and finance
deep discount — a discount far larger than normally offered. * * * … Universalium
deep-discount — adjective denoting financial securities carrying a low rate of interest and issued at a discount to their redemption value, so mainly providing capital gain rather than income. ↘N. Amer. heavily discounted … English new terms dictionary
deep discount — a discount far larger than normally offered … Useful english dictionary
deep discount security — deep discount security/deep discount bond A security issued at a price well below its face value (either more than 15% in total or at a discount of more than 0.5% per annum). It will therefore have a low coupon. Much, if not all of the return to… … Law dictionary