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

Leverage clientele

Leverage clientele

A group of shareholders who, because of their personal leverage, seek to invest in corporations that maintain a compatible degree of corporate leverage.


Leveraged recapitalization

Leveraged recapitalization

Often 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 investment company

Leveraged investment company

An investment company or mutual fund entitled to borrow capital for its operations. Also, an investment company that issues both income shares and capital shares.


Debt leverage

Debt leverage

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


Target Leverage Ratio

Target Leverage Ratio

The ratio of the market value of debt to the total market value of the firm that management seeks to maintain.


Further Suggestions

leverage on a warrant
Highly leveraged transaction (HLT)
Financial leverage
Leveraged company
reverse leverage
Net benefit to leverage factor
Unleveraged beta
Optimum Leverage Ratio
Operating leverage
Financial leverage clientele
Homemade leverage
Leveraged required return
leveraged buyout
Reverse leveraged buyout
Leveraged stock
Unleveraged program
Leveraged equity
Reverse leverage
Leveraged lease
Unleveraged required return


 
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