Markdown

Business / Taxes / Markdown: A markdown is the amount a broker-dealer earns on the sale of a fixed-income security and is the difference between the sales price and what the seller realizes on the sale. The markdown may or may not appear in the commission column or be stated separately on a confirmation statement. A markdown is determined, in part, by the demand for the security in the marketplace. A broker-dealer may charge a smaller markdown if the security can be resold at a favorable markup. The term markdown also refers more generally to a reduced price on assets that a seller wants to unload and will sell at less than the original offering price.

Canadian Agencies

Business / Finance / Canadian Agencies: Refers to over-the-counter trading. 'I have a buyer who will pay for the stock'. Uusually a standard markdown (1/8) from is applied to this price in bidding the seller for its stock. Antithesis of c MORE

Riskless Transaction

Business / Finance / Riskless Transaction: A transaction that is guaranteed a profit, such as the arbitrage of a temporary differential between commodity prices in two different markets. The evaluation of whether dealer markups and markdowns i MORE

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