Reverse Leverage

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Definition: Reverse Leverage

Reverse Leverage
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Full Definition of Reverse Leverage

1. Negative cash flow. The situation that occurs when the total yield on a cash investment is less than the interest rate on borrowed funds – indicates that financing is too costly. 2. Borrowing money at a higher interest rate than the return obtained by investing that money; here also called negative carry.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/reverse-leverage/
Modern Language Association (MLA):
Reverse Leverage. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 24, 2024 https://payrollheaven.com/define/reverse-leverage/.
Chicago Manual of Style (CMS):
Reverse Leverage. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/reverse-leverage/ (accessed: April 24, 2024).
American Psychological Association (APA):
Reverse Leverage. PayrollHeaven.com. Retrieved April 24, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/reverse-leverage/

Definition Sources

Definitions for Reverse Leverage 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: 16th November, 2021 | 0 Views.