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
brokerage account
Put on a call
credit balance
Put on a put
See All Related Terms »

revaluation method
intercommodity spread
swap dealer
period cost
Schedule C