Leverage


 

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Leverage

To derive additional benefits from existing resources.

Leverage

In the US, the ratio of a company's long term debt, typically bonds and preferred stock, to its equity in its capital structure. The greater the long term debt, the greater the leverage.

Leverage

The use of debt financing, or property of rising or falling at a proportionally greater amount than comparable investments. For example, an option is said to have high leverage compared to the underlying stock because a given price change in the stock may result in a greater increase or decrease in the value of the option.



Leverage

Similar Matches

Debt leverage

Debt leverage

Amplification of the return earned on equity when an investment or firm is financed partially with borrowed money.


Leverage on a warrant

Leverage on a warrant

A measure of 'true gearing' which measures how much more a warrant will move in percentage terms against the underlying asset. Calculated by multiplying the delta by gearing. Also known as elasticity, or omega.


Unleveraged program

Unleveraged program

The use of borrowed funds to finance less than 50% of a purchase of assets. In a leveraged program borrowed funds are used to finance more than 50%.


Homemade leverage

Homemade leverage

Idea that as long as individuals borrow (or lend) on the same terms as the firm, they can duplicate the effects of corporate leverage on their own. Thus, if levered firms are priced too high, rational investors will simply borrow on personal accounts to buy shares in unlevered firms.


Financial leverage clientele

Financial leverage clientele

A group of investors who have a preference for investing in firms that adhere to a particular financial leverage policy.


Further Suggestions

Reverse leverage
leveraged buyout
Leveraged recapitalization
Optimum Leverage Ratio
Leveraged investment company
Leverage clientele
Leveraged stock
Leveraged required return
Financial leverage
Unleveraged beta
Operating leverage
Highly leveraged transaction (HLT)
reverse leverage
Leveraged lease
Leveraged equity
Unleveraged required return
Net benefit to leverage factor
Leveraged company
Target Leverage Ratio
Reverse leveraged buyout


 
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