Financial ratios

Leverage (finance)

In finance, leverage (or gearing in the United Kingdom and Australia) is any technique involving borrowing funds to buy things, hoping that future profits will be many times more than the cost of borrowing. This technique is named after a lever in physics, which amplifies a small input force into a greater output force, because successful leverage amplifies the comparatively small amount of money needed for borrowing into large amounts of profit. However, the technique also involves the high risk of not being able to pay back a large loan. Normally, a lender will set a limit on how much risk it is prepared to take and will set a limit on how much leverage it will permit, and would require the acquired asset to be provided as collateral security for the loan. Leveraging enables gains to be multiplied. On the other hand, losses are also multiplied, and there is a risk that leveraging will result in a loss if financing costs exceed the income from the asset, or the value of the asset falls. (Wikipedia).

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Banking 10: Introduction to leverage (bad sound)

What leverage is. Why it is is good or bad. Leverage and insolvency. More free lessons at: http://www.khanacademy.org/video?v=8fxilNdEQTo

From playlist Banking and Money

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11. Stocks

Financial Markets (ECON 252) The stock market is the information center for the corporate sector. It represents individuals' ownership in publicly-held corporations. Although corporations have a variety of stakeholders, the shareholders of a for-profit corporation are central since the

From playlist Financial Markets (2008) with Robert Shiller

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FRM: Bank Balance Sheet & Leverage Ratio

Stylized balance sheet of depository institution to illustrate (1) high leverage, (2) dependency on spread (ROA - COF) and (3) key ratios: leverage, and Basel's Tier 1 leverage ratio. For more financial risk videos, visit our website! http://www.bionicturtle.com

From playlist Balance Sheet

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26. The Leverage Cycle and Crashes

Financial Theory (ECON 251) In order to understand the precise predictions of the Leverage Cycle theory, in this last class we explicitly solve two mathematical examples of leverage cycles. We show how supply and demand determine leverage as well as the interest rate, and how impatienc

From playlist Financial Theory with John Geanakoplos

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How Does Leverage Affect Trading Returns? The Kelly Criterion | Coffeezilla Follow-up

Todays video is a follow-up to the video I did earlier this week with Steven from Coffeezilla, "The Truth About Trading Gurus". Let's look at some of the lessons that can be taken from the world of gambling that might help a trader with sizing their trades. We look at the Kelly criterion

From playlist Statistics For Traders

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[See Description] Leverage - Python for Finance with Quantopian and Zipline 18

UPDATED series: https://pythonprogramming.net/quantopian-trading-strategies-introduction-python-programming-for-finance/ This series has become outdated with Quantopian 2.0. Here, we discuss the concept of leverage, mainly about the downsides of leverage. sample code: http://pythonpro

From playlist Python for Finance with Zipline and Quantopian

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What are Credit Derivatives?

In Todays video we will learn all about Credit Derivatives including Asset Backed Securities (ABS) Credit Default Swaps (CDS) and Collateralized Debt Obligations (CDO's) These classes are all based on the book Derivatives For The Trading Floor, available on Amazon at this link. https://am

From playlist Credit Derivatives

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What it means to buy a company's stock

What it means to buy a company's stock

From playlist Finance

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Applied Portfolio Management Private Equity | Leveraged Buyouts | Venture Capital

All slides are available on my Patreon page: https://www.patreon.com/PatrickBoyleOnFinance In todays Applied Portfolio Management class we learn about private equity, venture capital, growth capital funds and venture capital. We learn about fund structures, risk and historic returns. So

From playlist Applied Portfolio Management

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Call option as leverage | Finance & Capital Markets | Khan Academy

Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/put-call-options/v/call-option-as-leverage Call Option as Leverage. Created by Sal Khan. Watch the next le

From playlist Options, swaps, futures, MBSs, CDOs, and other derivatives | Finance and Capital Markets | Khan Academy

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Basic leveraged buyout (LBO) | Stocks and bonds | Finance & Capital Markets | Khan Academy

Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/leveraged-buy-outs/v/basic-leveraged-buyout-lbo The mechanics of a simple leveraged buy-out. Created by Sal Khan.

From playlist Stocks and bonds | Finance and Capital Markets | Khan Academy

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Put vs. short and leverage | Finance & Capital Markets | Khan Academy

Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/put-call-options/v/put-vs-short-and-leverage Put vs. Short and Leverage. Created by Sal Khan. Watch the ne

From playlist Options, swaps, futures, MBSs, CDOs, and other derivatives | Finance and Capital Markets | Khan Academy

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What Are Leveraged ETN's? | VelocityShares | UWTIF MORL MRRL | Structured Notes, Structured Products

Todays video is based on Mondays Wall Street Journal article on Leveraged ETN's called “Bankrupt in just two weeks, Individual investors get burned by collapse of complex securities". by Akane Otani. We will learn about levered ETN’s and the investors who have seen their retirement saving

From playlist What is Happening In The Market?

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What Are Financial Derivatives?

What Are Financial Derivatives? A Video Explaining what financial derivatives are, who trades them and why? Follow along using the book https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ In this video we will learn who issues derivatives, are they a zero sum game a

From playlist Class 1 Futures & Forwards

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4. Portfolio Diversification and Supporting Financial Institutions

Financial Markets (2011) (ECON 252) In this lecture, Professor Shiller introduces mean-variance portfolio analysis, as originally outlined by Harry Markowitz, and the capital asset pricing model (CAPM) that has been the cornerstone of modern financial theory. Professor Shiller commences

From playlist Financial Markets (2011) with Robert Shiller

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How do you risk manage portfolios that contain financial derivatives?

These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle Derivatives are specific types

From playlist Risk Management

Related pages

Coupon leverage | Return on assets | Reserve requirement | Risk | Return on equity | Volatility (finance) | Notional amount | Operating leverage | Interest rate swap