MLchartDataset catalogue

Leverage

Term · Law · MLC-T-LAW-003013

The use of borrowed capital to finance the purchase of assets, with the expectation that the after-tax income or capital appreciation from the asset will exceed the cost of borrowing. In corporate law, high leverage increases financial risk and can affect the duties of directors as a company approaches insolvency. A common measure is the debt-to-equity ratio, which compares a company's total liabilities to its shareholder equity.

Table 1. Record
IdentifierMLC-T-LAW-003013
FieldLaw
Record as JSON 
{
  "id": "MLC-T-LAW-003013",
  "term": "Leverage",
  "field": "Law",
  "definition": "The use of borrowed capital to finance the purchase of assets, with the expectation that the after-tax income or capital appreciation from the asset will exceed the cost of borrowing. In corporate law, high leverage increases financial risk and can affect the duties of directors as a company approaches insolvency. A common measure is the debt-to-equity ratio, which compares a company's total liabilities to its shareholder equity.",
  "url": "https://mlchart.com/terminology/law/leverage/"
}

Record 2,964 of 5,445 in Law terminology (MLC-0107). Request the full dataset.