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

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.


Net benefit to leverage factor

Net benefit to leverage factor

A linear approximation of a number, that enables one to operationalize the total impact of leverage on firm value in the capital market imperfections view of capital structure.


Reverse leverage

Reverse leverage

The investment of borrowed money where the return fails to match the interest payable on the loan.


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%.


Further Suggestions

Leverage clientele
Reverse leverage
Unleveraged required return
Homemade leverage
Leveraged stock
Leveraged investment company
Target Leverage Ratio
Unleveraged beta
Debt leverage
Leveraged equity
Leveraged lease
Optimum Leverage Ratio
Reverse leveraged buyout
Leveraged required return
Leveraged recapitalization
Leveraged company
leveraged buyout
Financial leverage
Operating leverage
Highly leveraged transaction (HLT)


 
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