Glossary

Glossary

Term Book Chapter Definition
Leverage CFA Level 1 Exam Chapter 9: Derivatives A feature of derivatives that can provide exposure to a large amount of an underlying asset without having to pay the full price for the asset, amplifying profits, but also potential losses.
Leverage Corporate Finance Chapter 9: Capital Structure Decisions The use of debt in a company’s capital structure, which can amplify returns for equity holders but also increases financial risk.