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LeverageTo derive additional benefits from existing resources.LeverageIn 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.LeverageThe 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 MatchesLeveraged recapitalizationLeveraged recapitalizationOften used in risk arbitrage. A public company takes on significant additional debt with the purpose of either paying an extraordinary dividend or repurchasing shares, leaving the public shareholders with a continuing interest in a more financially leveraged company. Popular form of shark repellent See: Stub. Leverage on a warrantLeverage on a warrantA 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. Leveraged leaseLeveraged leaseA lease arrangement under which the lessor borrows a large proportion of the funds needed to purchase the asset. The lender has a lien on the assets and a pledge of the lease payments to secure the borrowing. Financial leverage clienteleFinancial leverage clienteleA group of investors who have a preference for investing in firms that adhere to a particular financial leverage policy. Leveraged buyoutLeveraged buyoutThe takeover of a company by investors who use the company's own assets as collateral to raise the money which finances the bid. Normally the loans are then repaid either from the company's cash flow, or by selling some of its assets. Further SuggestionsLeveraged investment companyreverse leverage Leverage clientele Leveraged company Unleveraged program Target Leverage Ratio Optimum Leverage Ratio Net benefit to leverage factor Leveraged stock Leveraged equity Homemade leverage Leveraged required return Reverse leverage Unleveraged required return Unleveraged beta Financial leverage Reverse leveraged buyout Debt leverage Highly leveraged transaction (HLT) Operating leverage |
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