Definition of "haircut"
  1. A percentage decrease from the stated value of assets, considering potential decreases in value prior to liquidation as a measure for computing asset value for capital, segregation, or margin requirements
How to use "haircut" in a sentence
  1. A severe market downturn led to larger haircuts in the assessed value of securities.
  2. As a result of economic instability, lenders began to apply larger haircuts to the collateral provided for loans.
  3. Fluctuating real estate prices may lead to substantial haircut when computing the value of property assets.

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