Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Leverage
vb. 1. To provide (a borrower or investor) with credit or funds to improve speculative ability and to seek a high rate of return. 2. To supplement (available capital) with credit or outside funds. 3. To fund (a company) with debt as well as shareholder equity. 4. Antitrust. To use power in one market to gain an unfair advantage in another market. 5. Insurance. To manipulate two coverages, as by an insurer withholding settlement of one claim to influence a claim arising under another source of coverage.
capital leverage
The use of borrowed funds in a business to obtain a return greater than the interest rate. See LEVERAGE.
leverage contract
See LEVERAGE CONTRACT.
leverage fund
See dual fund under MUTUAL FUND.
leverage ratio
See LEVERAGE (4)
leveraged buyout
The purchase of a publicly held corporation's outstanding stock by its management or outside investors, financed mainly with funds borrowed from investment bankers or brokers and usu. secured by the corporation's assets. - Abbr. LBO.
leveraged lease
A lease that is collateral for the loan through which the lessor acquired the leased asset, and that provides the lender's only recourse for nonpayment of the debt; a lease in which a creditor provides nonrecourse financing to the lessor (who has substantial leverage in the property) and in which the lessor's net investment in the lease, apart from nonrecourse financing, declines during the early years and increases in later years. - Also termed third party equity lease; tax lease.
leveraged recapitalization
See RECAPITALIzA. TION.