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haircut definition - finance
Formulas that reduce the value of any given security based on its class, market risk, or maturity date. Haircuts come into play when the borrowers become unable to make payments or repay the loan or when companies value the securities they hold.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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