A discount house, typically a specialized financial institution or bank, focuses on operating in the discount market, primarily dealing with the discounting of bills of exchange, including Treasury bills.
Discounting refers to the application of discount factors to cash flow projections in discounted cash flow analysis and the process of selling a bill of exchange before its maturity at a discounted price.
A repurchase transaction, also known as a 'repo,' is a form of discounting where a corporation raises immediate funds by selling negotiable paper to a bank with the agreement to repurchase the paper upon its maturity.
