hair cut

Noun

haircut (plural haircuts)

1. The act of cutting of the hair, often done professionally by a barber, hair stylist, or beautician.
2. The style into which the hair is cut.

   Synonyms:

   hairdo, hairstyle

3. A partial loss, financially: thus, in a bankruptcy proceeding, the proportional reduction in the debt that will be paid to each creditor (based on an evaluation of the total debt owed and the total assets of the debtor); among investors, the negative return on investment from a losing proposition.
   • to take a haircut
4. The difference between the value of a loan and the value of its collateral.
   • Government securities having high credit rating such as Treasury bonds and Treasury bills are usually subjected to 1% to 10% haircut, while for more risky, volatile or illiquid securities, such as a stock option, the haircut might be as high as 30%.2012, Samuel N. Cohen et al., editors, Stochastic Processes, Finance and Control […] , World Scientific, →ISBN, page 190

   Synonyms:

   margin

See all 5 meanings of haircut