Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Leverage in its most general sense means the ability to magnify results at a relatively low cost. In business, you make decisions about leverage that affect your profitability. When you evaluate ...

The strategic use of debt as leverage has many advantages for business. These include enhanced returns, larger capital and ability to better manage cash flow. However excess leverage can lead to ...

What do banks, airlines and hotels have in common? The answer is high operating leverage (also known as operating gearing). This means that fixed costs (predominantly property and staff) are a high ...

Hedge funds have a variety of strategies at their disposal that most ordinary investors never use. One strategy that many hedge funds use is to employ leverage by buying certain stocks and selling ...