Haircut_(finance) Haircut_(finance)

Haircut (finance) - Definition

Related Words: Angel, Assets, Assist, Back, Bank, Banking, Bear, Buttress, Capital, Capitalize, Cash, Commerce, Economics

In finance, a haircut is the amount of net-capital a broker-dealer must maintain in order order to comply with regulatory capital requirements. This usually involves the valuation of the broker-dealer's securities using prescribed formulas that depend on the type of security that is being valued.

Example Usage of (finance)

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