Exchange Currency

homemade leverage

The idea that if people leverage themselves in borrowing and lending in the same fashion as a corporation that they can mimic the impact of corporate leverage. Investors use this method to move from overpriced shares in highly levered firms to those in unlevered firms by borrowing under the same conditions.

Related information about homemade leverage:
  1. Homemade Leverage Definition | Investopedia
    A substitution of risks that investors may undergo in order to move from overpriced shares in highly levered firms to those in unlevered firms by borrowing in ...
     
  2. Homemade Leverage - Wikipedia, the free encyclopedia
    Homemade Leverage is a financial terminology. It is a use of personal borrowing of investors to change the amount of financial leverage of the firm. Investors ...
     
  3. Friendly Finance: Homemade Leverage
    Dec 17, 2009 ... Therefore, homemade leverage means personal leverage. Just like when companies borrow and create corporate leverage, individuals, when ...
     
  4. Homemade Leverage - Financial Dictionary - The Free Dictionary
    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 ...
     
  5. What is homemade leverage? definition and meaning
    Definition of homemade leverage: The idea that if people leverage themselves in borrowing and lending in the same fashion as a corporation that they can ...
     
  6. Home Made Leverage 1: Moving from a Levered to an Unlevered ...
    Mar 1, 2010 ... In the case when homemade leverage is used to invest, why is my investment still $15,000, why is it not $30,000? I may have borrowed the ...
     
  7. Homemade leverage is: A) the incurrence of debt by a corpor... More ...
    Homemade leverage is: A) the incurrence of debt by a corporation in order to pay dividends to shareholders. B) the exclusive use of debt to fund a corporate ...
     
  8. Default Risk, Homemade Leverage and the Modigliani-Miller Theorem
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