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noun

haircut

HEH-uh-kuht
noun
1
The act of trimming or styling someone's hair, or the resulting style.
"He got a fresh haircut before the job interview."
"Her new haircut made her look years younger."
2
In finance, a reduction in the value of an asset or in the amount creditors are repaid.
"Bondholders were forced to accept a 30% haircut on their investment."
"The bank applies a haircut to risky collateral before lending against it."

How to Use Haircut

Learner’s notes

In plain EnglishEither a trim/style of your hair, or, in finance, a cut taken off the value of an asset or debt.

When to use it

The financial sense is common in banking and investing contexts, not everyday conversation.

Common pairings
get a haircut a bad haircut take a haircut on the loan

Word Forms

haircutted past tense, haircuts plural, haircuts singular

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He got a fresh _____ before the job interview.

Etymology

A plain combination of "hair" and "cut." The financial meaning developed later as a figurative extension — a "trim" taken off an asset's value.

Definitions: FreeDict original editorial