Sentences with phrase «much equity relative»

On the other hand, if a company is underleveraged — that is, too much equity relative to debt — it may be paying too high of a rate on its overall capital.

Not exact matches

This allows the loan to feel much more like an equity investment, but it avoids the problem of adding your relatives and friends into your equity capital structure.

Typically, bonds are far safer in terms of how much they can fall relative to equities in your portfolio, even in a rising interest rate environment.

Another very compelling slide from the Interactive Brokers presentation deck shows how much lower Interactive Brokers» commissions are for equity and, in particular options trading, relative to their US peers even after a significant commission price cut by the group of online brokerages earlier this year.

In a few cases, e.g., Apple Computer and Digital Equipment, much of the corporate wealth created seems to have been dissipated by current difficulties; but the businesses remain quite strong, and they seem to have quite large resources relative to the prices of their equities.

While the market is large, it is far less liquid than the equity market, with bonds trading far less frequently, and typically with a much higher bid / offer spread relative to underlying volatility.

If a company is overleveraged — that is, too much debt relative to equity — this will decrease its credit rating as cash flow or income relative to debt decreases.

When the index is high, it means either the equity market is attractive relative bonds or that the market isn't pricing in much earnings growth.

How much does the generation of free cash flow change relative to the price paid or received for equity?