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Investing Glossary:
Leverage
Copyright 2012,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
- L -
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| Definition: |
| 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.
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