BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A markdown is a permanent price decrease for a product at the end of its lifecycle (or “seasonality”). Markdowns are used to temporarily increase demand for low-demand products, ideally long enough to sell through all stock. Markdowns are caused by excess inventory at the end of a selling season.

Detailed explanation-2: -Markdown Works [Example] For instance, lets say broker X sells shares of ABC stock to buyers at a rate of $20 per share. In the broker market, the original price of these shares was $40 per share. In this case, the broker will markdown on the shares when he sales will be; $20-$40 =-$20.

Detailed explanation-3: -Sales, discounts, clearance, price reductions: these are all examples of retail markdowns. Shoppers love markdowns because they make them feel like they’re getting a good deal. Retailers benefit from markdowns because they help liquidate inventory.

Detailed explanation-4: -An example of markdown in retail is when a retailer reduces the price of a product to encourage customers to make a purchase. Markdowns are used to clear out old inventory and to increase sales.