At a Discount (Below Par Value)

A security is said to be selling at a discount when the market value is below the par value of the security. For example, a bond selling at 85 ($850) with a par value of $1,000 is selling at a 15% or $150 discount from par value. A $25 par value stock selling at $23 is selling at an 8% or $2.00 discount.