In general, the extent to which anything is selling below its normal price. There are a number of contexts in which the term is used. In the context of investing, the discount is the difference between the net asset value (NAV) per share of an investment trust and the share price, expressed as a percentage of the net asset value per share (for example, if the NAV is £3.00, and the share price of the trust is £2.70, the trust is trading at a 10% discount to its NAV). In the bond markets, it is the difference between a bond's par and its market price, and the difference between the gross proceeds received on the sale of a convertible bond and the convertible's price.