HAIRCUT Definition

Bookmark and Share

HAIRCUT is the amount of reduction in market value given to securities pledged as collateral, typically in a repurchase agreement or a reverse repurchase agreement. This reduc­tion assures the lender of funds in this type of transaction that, even if the collateral's market value declines, there is time to call for additional collateral to bring the collateral value back up to an acceptable level.

Learn new Accounting Terms

PROCUREMENT, from a business perspective, is the purchasing of services or materials.

A is the fifth letter of a Nasdaq stock symbol that specifies Class A shares.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.