Investment leverage refers to using borrowed money or debt to increase the potential return or profitability of an investment. It is like using a financial tool to magnify the gains or losses. By leveraging, investors aim to make more money than they would have if they only used their own capital. However, it also means taking on more risk, as losses can be amplified too.
Full definition
Synonyms for individual words can be found below.
«investment»
«leverage»
Sentences with «investment leverage»
- The fund currently uses investment leverage by issuing preferred shares. (putnam.com)
- The fund currently uses investment leverage by issuing preferred shares. (putnam.com)
- This is a function of investment leverage plus underwriting profits. (gregspeicher.com)
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