Meaning LEVERAGE: The use of debt financing, or property of rising or falling at a proportionally greater amount than comparable investments. For example, an option is said to have high leverage compared to the underlying stock because a given price change in the stock may result in a greater increase or decrease in the value of the option
More terms such as Leverage in Dictionary L.
- Definition Long-Term Gain:
- Examples A profit on the sale of a capital assets held longer than 12 months, and eligible for long-term capital gains tax treatment leverage definition.
- Definition Level Pay:
- Examples principal and interest payments (P;I) due under a mortgage so that total monthly payment of P;I is the same. different from the typical mortgage for which the principal payment component of the leverage explain.
- Definition Level-Coupon Bond:
- Examples Bond with a stream of coupon payments that remain the same throughout the life of the bond leverage what is.
- Definition Liquidity Diversification:
- Examples Investing in a variety of maturities to reduce the price risk to which holding long bonds exposes the investor leverage meaning.
- Definition Life Annuity:
- Examples An annuity that pays a fixed amount for the lifetime of the annuitant leverage abbreviation.
