Meaning HOMEMADE LEVERAGE: Idea that as long as individuals borrow (or lend) on the same terms as the firm, they can duplicate the effects of corporate leverage on their own. Thus, if levered firms are priced too high, rational investors will simply borrow on personal accounts to buy shares in unlevered firms
More terms such as Homemade leverage in Dictionary H.
- Definition Hammering The Market:
- Examples Heavy selling of stocks by speculators who think that the stock is overvalued and is about to drop homemade leverage definition.
- Definition Holding Company:
- Examples A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors homemade leverage explain.
- Definition House Of Issue:
- Examples An investment banking firm whose business it is to underwrite stock or bond issues and offer the securities to the public homemade leverage what is.
- Definition High-Tech Stock:
- Examples Stocks of companies operating in high-technology fields homemade leverage meaning.
- Definition Home Run:
- Examples Large capital gain in a stock in a short period of time homemade leverage abbreviation.