- Industry: Financial services
- Number of terms: 73910
- Number of blossaries: 1
- Company Profile:
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In finance, a haircut is a percentage that is subtracted from the market value of an asset that is being used as collateral.[1] The size of the haircut reflects the perceived risk associated with holding the asset. However, the lender has a lien for the entirety of the asset.
Industry:Financial services
The interest rate that banks with excess reserves at a Federal Reserve district bank charge other banks that need overnight loans. The Fed funds rate, as it is called, often points to the direction of US interest rates. The most sensitive indicator of the direction of interest rates, since it is set daily by the market, unlike the prime rate and the discount rate.
Industry:Financial services
The point in the life of a mortgage-backed security guaranteed or issued by the Government National Mortgage Association, the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation when half the principal has been repaid.
Industry:Financial services
A federal tax imposed on assets conveyed as gifts to individuals.
Industry:Financial services
A method of calculating taxes on a lump-sum distribution from a qualified retirement plan that enables the tax payer to pay less than the current tax rate.
Industry:Financial services
The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks.
Industry:Financial services
A contract that specifies the price and quantity of an asset to be delivered on in the future. Forward contracts are not standardized and are not traded on organized exchanges
Industry:Financial services
Heavy selling of stocks by speculators who think that the stock is overvalued and is about to drop.
Industry:Financial services
