|
|
Leverage |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
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 MatchesDebt leverageDebt leverageAmplification of the return earned on equity when an investment or firm is financed partially with borrowed money. 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. Unleveraged programUnleveraged programThe 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 leverageHomemade leverageIdea 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 clienteleFinancial leverage clienteleA group of investors who have a preference for investing in firms that adhere to a particular financial leverage policy. Further SuggestionsReverse leverageleveraged 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 |
|
|
|