haircut

Meanings

1. 1
   noun

   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

2. 2
   noun

   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%.

3. 3
   verb

   To reduce the value assigned to an asset.

   But whereas in the past it has been possible for a brokerage house to credit a customer’s account for 100 percent of the value of a commodity, we have required that that value be haircutted significantly.

4. 4
   noun

   the act of cutting the hair

5. 5
   noun

   the style in which hair has been cut

6. 6
   noun

   The act of cutting of the hair, often done professionally by a barber, hair stylist, or beautician.

7. 7
   noun

   The style into which the hair is cut.

Etymology

From hair + cut.