September 2015
Beginner
200 pages
4h 9m
English
The author acknowledges and appreciates the contribution provided by Bendigo and Adelaide Bank’s margin lending division (Leveraged Equities) in the preparation of this chapter.
Gearing (or leverage) is an investment strategy for getting exposure to an asset with a smaller amount of capital than would be required to buy the asset outright. ‘Exposure’ can mean different things depending on the asset. For financial assets such as shares, exposure generally means the right to earn any income and capital returns on the asset. There are many ways to implement a gearing strategy and one common way is to borrow part of the purchase price of an asset — for example, borrowing part of the purchase price of an investment ...
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