leverage
The amount of debt used by a business (or an investor) to Control a large financial position with a relatively small amount of capital. Businesses often use bank loans, bonds, and other debt instruments to increase their ability to expand or develop new products. Investors use margin debt as leverage to take a larger position than would be possible with Cash funding. Highly leveraged companies (and investors) face increased risk from unforeseen events.
Browse by Subjects
Put on a put
credit balance
brokerage account
prime brokerage
total return
See All Related Terms »

Office Of Thrift Supervision
invisible assets
Delivery Instrument
conversion arbitrage
booming