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Haircut |
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Haircut The margin or difference between the actual market value of a security and the value assessed by the lending side of a transaction).
Haircut. A haircut, in the financial industry, is a percentage discount that's applied informally to the market value of a stock or the face value of a bond in an attempt to account for the risk of loss that the investment poses. So, for example, a stock with a market value of $30 may get a haircut of 20%, to $24, when an analyst or money manager tries to anticipate what is likely to happen to the price. Similarly, when a broker-dealer calculates its net capital to meet the 15:1 ratio of debt to liquid capital permissible under Securities and Exchange Commission (SEC) rules, it typically gives volatile securities in its portfolio a haircut to reduce the potential for being in violation. The only securities that consistently escape a haircut are US government bonds because they are considered free of default risk. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| Clearly drawn illustrations feature hip hairstyles and clothes; this book should resonate with its intended audience. As tall, elaborate, and luscious as Marie's precipitous hairstyles, the cakes at court are just a taste of the over-the-top royal consumption that led to the French Revolution and then to Marie Antoinette's beheading in 1793. First, Felicia humiliates Penny Poodle by mocking her hairstyle and then cruelly makes a prediction for Babymouse's musical future. |
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