ive been hearing "haircut" once too often at cnbc, bloomberg when referring to the greece situation.. what does it mean?
does it mean budget cut?
does it mean budget cut?
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Dislikedive been hearing "haircut" once too often at cnbc, bloomberg when referring to the greece situation.. what does it mean?
does it mean budget cut?Ignored
QuoteDisliked1. The difference between prices at which a market maker can buy and sell a security.
2. The percentage by which an asset's market value is reduced for the purpose of calculating capital requirement, margin and collateral levels.
Read more: http://www.investopedia.com/terms/h/...#ixzz1bJdESs7P
DislikedHaircut as explained by Investopedia and Wikipedia (until the ending line) is not the one that is what Cnbc etc are talking bout.
Investopedia:- For example , If you want to borrow a 10,000$ from me, i would like have some collateral in case you wont be able to pay back. So naturally you will give me something collateral that has a value of 10,000$.
But i want something that's worth more than 10k cause in the time you would be able to pay back or tell me that you cant (default),... the value of that collateral could have gone down (imagine...Ignored