Leverage
Use of borrowed funds to increase purchasing power and, ideally, to increase profitability of an investment business. Or, the amount of debt used to finance firm's assets. A firm with much more debt than equity is considered to be highly leveraged.
| Related Terms: Debt Ratio Equity Swap Enhanced Index Funds – EIFS Operating Leverage Recapitalization Ultra ETF Unlevered Beta Adjusted present value-APV |
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