Glossary entry (derived from question below)
English term or phrase:
excess leverage
English answer:
too much use of borrowed money in investment
Added to glossary by
Jack Doughty
Apr 26, 2010 06:41
14 yrs ago
3 viewers *
English term
Czech Republic
educated in humanities and in science
Native in: Czech 
Works in: Czech to English, English to Czech
excess leverage
English
Bus/Financial
Economics
G-20
"Strengthening Financial Systems and Facilitating Finance for Sustained Growth
16. We committed to strengthen financial supervision to prevent the re-emergence in the financial system of excess credit growth and excess leverage and undertake macro prudential and regulatory policies to help prevent credit and asset price cycles from becoming forces of destabilisation."
I would like to know what is meant by the phrase "excess leverage" in the above sentence. Could you, please, rephrase it so that a non-native non-economist could understand it.
16. We committed to strengthen financial supervision to prevent the re-emergence in the financial system of excess credit growth and excess leverage and undertake macro prudential and regulatory policies to help prevent credit and asset price cycles from becoming forces of destabilisation."
I would like to know what is meant by the phrase "excess leverage" in the above sentence. Could you, please, rephrase it so that a non-native non-economist could understand it.
Responses
| 4 +2 | too much use of borrowed money in investment |
Jack Doughty
|
Change log
Apr 27, 2010 11:26: Jack Doughty Created KOG entry
Responses
+2
16 mins
Jack Doughty
United Kingdom
United Kingdom
Native in English
&
English
United Kingdom
Translator since 1953
Native in: English
Works in: Russian to English, German to English, English
Related KudoZ points
:
41
Selected
too much use of borrowed money in investment
Definitions of levarage on the Web:
# investing with borrowed money as a way to amplify potential gains (at the risk of greater losses)
wordnetweb.princeton.edu/perl/webwn
# In finance, leverage or leveraging refers to the use of debt to supplement investment.BBC. . Retrieved 2008-10-23 Companies usually leverage to increase returns to stock, as this practice can maximize gains (and losses). ...
en.wikipedia.org/wiki/Leverage_(finance)
A term describing the greater percentage of profit or loss potential when a given amount of money controls a security with a much larger face value. ...
www.888options.com/help/glossary/default.jsp
# The ability to control large dollar amount of a commodity with a comparatively small amount of capital. Also known as 'gearing'.
www.forex.pk/glossary-forex-terms.htm
# Also called margin. The ratio of the amount used in a transaction to the required security deposit.
forextradings.org/forex_glossary-en-fx_dictionary.html
# The degree to which an investor or business is using borrowed money.
www.wellsref.com/home/glossary.html
# investing with borrowed money as a way to amplify potential gains (at the risk of greater losses)
wordnetweb.princeton.edu/perl/webwn
# In finance, leverage or leveraging refers to the use of debt to supplement investment.BBC. . Retrieved 2008-10-23 Companies usually leverage to increase returns to stock, as this practice can maximize gains (and losses). ...
en.wikipedia.org/wiki/Leverage_(finance)
A term describing the greater percentage of profit or loss potential when a given amount of money controls a security with a much larger face value. ...
www.888options.com/help/glossary/default.jsp
# The ability to control large dollar amount of a commodity with a comparatively small amount of capital. Also known as 'gearing'.
www.forex.pk/glossary-forex-terms.htm
# Also called margin. The ratio of the amount used in a transaction to the required security deposit.
forextradings.org/forex_glossary-en-fx_dictionary.html
# The degree to which an investor or business is using borrowed money.
www.wellsref.com/home/glossary.html
4 KudoZ points awarded for this answer.
Comment: "Thanks a lot!"
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