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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

markdown and markup  

Definition 1.

A markdown is a charge subtracted from the selling price of a security that a customer is selling to a dealer/ broker for the broker's/dealer own account. The broker/dealer adds a markup to the price when it sells a security to a customer from its own account. The markdown or markup are the equivalent of a commission on the sale.
 
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