- noun the difference between the market value of a security and the amount lent to the owner using the security as collateral
- noun an estimate of possible loss in investments
- The loss of asset value for a creditor when a debtor defaults and then renegotiates downward the value of the loan. Sizable haircuts have been often been experienced by international lenders as the result ofdebt and financial crises.
- noun an act of making hair shorter by cutting it