Related Words

Financial Leverage Ratios: A group of investors who have a preference for investing in firms that adhere to a particular financial leverage policy.

Leveraged Buyout (LBO): A transaction used to take a public corporation private that is financed through debt such as bank loans and bonds. Because of the large amount of debt relative to equity in the new corporat . . . View Full Definition

Leveraged Company: A company that has debt in its capital structure.

Leveraged Buyout: A leveraged buyout occurs when a group of investors using borrowed money, often raised with high yield bonds or other kinds of debt, takes control of a company. These buyouts are usually hos . . . View Full Definition

Leveraged Beta: The beta of a leveraged required return; that is, the beta as adjusted for the degree of leverage in the firm's capital structure.

Leverage Rebalancing: Making transactions to adjust (rebalance) a firm's leverage ratio to a target ratio.

Leveraged Equity: Stock in a firm that relies on financial leverage. Holders of leveraged equity experience the benefits and costs of using debt.

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.

Leveraged Stock: Stocks financed with credit, such as that purchased on a margin account.

Liquidity Ratios: Ratios that measure a firm's ability to meet its short-term financial obligations on time, such as the ratio of current assets to current liabilities.