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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 MatchesOptimum Leverage RatioOptimum Leverage RatioThe borrowing level that maximizes the value of the firm. The cost of capital to the firm is minimized at that same level. 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. Leveraged 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. Leveraged stockLeveraged stockStocks financed with credit, such as that purchased on a margin account. Highly leveraged transaction (HLT)Highly leveraged transaction (HLT)Bank loan to a highly leveraged firm. Further SuggestionsLeveraged equityLeverage clientele Reverse leverage Debt leverage Financial leverage Net benefit to leverage factor Leveraged investment company Leveraged required return Financial leverage clientele Homemade leverage Leveraged company Leveraged lease Reverse leveraged buyout Target Leverage Ratio reverse leverage Unleveraged beta Unleveraged required return Operating leverage Unleveraged program leverage on a warrant |
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