Related Words

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

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 sha . . . View Full Definition

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

Leveraged Required Return: The required return on an investment when the investment is financed partially by debt.

Leveraged Portfolio: A portfolio that includes risky assets purchased with funds borrowed.

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 Lease: A lease arrangement under which the lessor borrows a large proportion of the funds needed to purchase the asset. The lender has a lien on the assets and a pledge of the lease payments to sec . . . View Full Definition

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.

Operating Leverage: Fixed operating costs, which are characterized as leverage because they accentuate variations in profits.

Unleveraged Beta: A group of stocks having a common feature, such as similar outstanding market capitalization or same product line.