Definition

A financial term referring to the process of discounting a financial instrument again after it has already been discounted once, often involving commercial paper.

Example

The bank offered a rediscount on the commercial paper to improve liquidity.

Conversation

Have you ever heard about a rediscount in finance?

Yeah, I read something about it, but I'm not entirely sure how it works.

It's basically when commercial paper gets discounted a second time.

That makes sense! It sounds like a useful tool for managing cash flow.

Synonyms & Antonyms

Definition

To apply a discount to something again, usually in a financial context.

Example

The bank decided to rediscount the notes to improve liquidity.

Tense Forms

Conversation

I heard they might rediscount the prices at the store soon.

Really? That sounds like a good reason to check it out.

Yeah, I hope they rediscount some of the items I wanted.

Root Explanation

Rediscount → It is formed from "re-" (meaning again) and "discount" (from Old French *descompter*, meaning to deduct or subtract). The word "rediscount" means to discount again or to apply a discount a second time.

Memory Tip

Think of applying a discount 'again' ('re-') to something that has already been discounted.

Visually Confused Words