www.financial-terms.co.uk


Home
Definitions



Compare
Debt


Homemade leverage

The financial definition for Homemade leverage:

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 firms are priced too high, rational investors will simply borrow on personal accounts to buy shares in unlevered firms.




Similar Matches

Homemade dividend

Homemade dividend
Sale of some shares of stock to get cash in an amount similar to that of a cash dividend.




Click to compare definitions of Homemade leverage
Click to view definitions beginning ho
  www.financial-terms.co.uk is a finance, business, investment and stock market resource of common financial words.