WORD OF THE DAY: RESISTANCE - refers to an effective upper bound on prices achieved because there are many willing sellers at that price level. ... More
1. ) The amount by which the price for a security or bond sells below its par or face value. The discount or difference between such a reduced value purchase price and the redemption (par) value comprises all or part of the investor's compensation for owning the security.
2. ) The amount by which a preferred stock or bond may sell below its par value. See Premium.