Define: Gearing Effect

UK Accounting Glossary

Definition: Gearing Effect



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Full Definition of Gearing Effect


A substantial gearing effect means that a one penny rise or fall in the price of a warrant will represent a much bigger percentage profit or loss for the holder than if he held the actual shares.


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Definition Sources


Definitions for Gearing Effect are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 15th February 2020.