Leveraged stock

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Leveraged stock

Stocks financed with credit, such as that purchased on a margin account.

Leveraged Stock

A stock bought on credit, especially on a margin account. Generally, one purchases a leveraged stock with one's broker's money, with the stock and cash as collateral. This increases the stock owner's profit when the net value goes up and increases his/her debt to the broker when it goes down.
References in periodicals archive ?
The Tax Court held that a leveraged securities agreement was not a securities lending arrangement under IRC [section] 1058 since its economic substance indicated the taxpayers' opportunity for gain had been reduced.
Horan, 36, have been investing in the leveraged securities markets since 1991.
Hedge funds differ from mutual funds in many ways: They can buy a wider variety of securities; they are restricted to fewer investors; they can try to produce a gain irrespective of whether stock and bond markets are rising or falling; they have not been subject to strict SEC regulations and disclosure requirements (except for the new "funds of funds" discussed in the text of the article); they tend to concentrate their portfolios in fewer investments; they have more leeway to "time" the market; they cannot advertise; they can limit the number of contributions and withdrawals; their compensation method is based on incentive and management fees that usually are much higher than those for mutual funds; and they can invest in long, short and leveraged securities.
The increase in assets was due to the initial public offerings proceeds and a leveraged securities transaction where $25 million of securities were acquired with match funded FHLB borrowings.
Wiatr, NewMil's Chairman, President and CEO said, "Our net income has continued to increase as a result of growth in earning assets, including leveraged securities, and continued control of operating expenses.