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Discount
A discount occurs when an asset or token trades below a relevant reference value. For example, a tokenized investment trading at $97 while its underlying reference value is $100 would be trading at a 3% discount to that reference.
Why it matters to you
A discount does not automatically mean an investment is cheap. It may reflect limited liquidity, redemption restrictions, market risk, investor concerns or differences between the token and the asset it references. Understanding why the discount exists matters more than simply noticing it.
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