For Haircut we have terms and definitions in 6 topics. The topics are Derivatives, Drugs, Finance, Frauds and Scams, Investing and Securities.

Haircut (Derivatives)

The excess of an asset's market value over either (a) the regulatory capital value or (b) the loan for which it can serve as adequate capital.

Haircut (Drugs)

Marijuana

Haircut (Finance)

The margin or difference between the actual market value of a security and the value assessed by the lending side of a transaction).

Haircut (Frauds and Scams)

Industry term for the valuation of securities used to calculate a broker/dealer's net capital. The haircut will change depending on the class of a security, its market risk, and the time to maturity. The haircut may fluctuate from 0% to 30% (common for equity securities) to 100% for fail positions (securities with past due delivery) that have prospect of settlement.

Haircut (Investing)

Industry term for the valuation of securities used to calculate a broker/dealer's net capital. The haircut will change depending on the class of a security, its market risk, and the time to maturity. The haircut may fluctuate from 0% to 30% (common for equity securities) to 100% for fail positions (securities with past due delivery) that have prospect of settlement.

See Also: Equity; Fail Position; Maturity Date; Risk

Haircut (Securities)

A haircut is a percent reduction required to certain valuations of assets included in a firm's net capital calculation. Percentages are set by the SEC to allow for three types of potential losses in rapid liquidation: fluctuations in the market value of securities positions, losses in open contractual commitments made in firm commitment underwritings, and losses for aged fail-to-delivers.

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