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Haircut (finance)
In finance, a haircut is a percentage that is subtracted from the market value of the assets that are being used as collateral (finance). The size of the haircut reflects the perceived riskiness associated with the assets. For example, Treasury bills (which are seen as fairly safe) might have a haircut of 1%, while for a stock option (which are seen as less safe) the haircut might be as high as 30%.
Last updated: 05-07-2005 11:49:27
10-26-2009 08:16:03
The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details
The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details