Leverage: Using long-term debt to secure funds for an organization. In the social investment world, often refers to financial participation by other private, public or individual sources.

 

Related Words

Leverage: Using long-term debt to secure funds for an organization. In the social investment world, often refers to financial participation by other private, public or individual sources.

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.

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.

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

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

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.

Unleveraged Program: The beta of an unleveraged required return (i.e., no debt) on an investment when the investment is financed entirely by equity.

Reverse Leveraged Buyout: Bringing back into publicly traded status a company that had been privatized by way of a leveraged buyout.

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