Catchword: take a haircut
Part of speech:
v. phr. The part of speech reflects that used in the
full entry, and not necessarily the part of speech as it is used in the quotation below.
Quotation: To account for the fact that the shares cannot be sold, FBR uses an accounting technique known as a “liquidity discount,” or, in the jargon of Wall Street, “taking a haircut.” Back to your house, the one with the value that increased to $300,000 from $200,000. If you decide to take out a home equity loan to pay your child’s college tuition, most lenders won’t let you borrow the full $100,000 increase in value. They’ll lend you only 80 percent of the value, which means taking a haircut of 20 percent.
Article or Document Title:
“Evaluating FBR’s Earnings: ‘Haircut’ or a Close Shave?”
Author:
Jerry Knight
Article, document, publication, web site:
Washington Post
Date of publication:
Nov. 20, 2000
Page number:
E01