What does homemade leverage mean?
Definitions for homemade leverage
home·made lever·age
This dictionary definitions page includes all the possible meanings, example usage and translations of the word homemade leverage.
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Wikipedia
Homemade leverage
In finance, homemade leverage is the use of personal borrowing of investors to change the amount of financial leverage of the firm. Investors can use homemade leverage to change an unleveraged firm into a leveraged firm.According to the Corporate Finance Institute, "the founding philosophy of homemade leverage is the Modigliani–Miller theorem, which assumes an efficient market and the absence of corporate taxes and bankruptcy costs."Investors take this concept and use it to “recreate a leverage scenario using a portion of their investments. The argument works under the assumption that corporate taxes and bankruptcy costs are absent, which would otherwise disrupt an investor’s ability to produce the leverage scenario accurately.”
Numerology
Chaldean Numerology
The numerical value of homemade leverage in Chaldean Numerology is: 2
Pythagorean Numerology
The numerical value of homemade leverage in Pythagorean Numerology is: 4
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"homemade leverage." Definitions.net. STANDS4 LLC, 2025. Web. 15 Feb. 2025. <https://www.definitions.net/definition/homemade+leverage>.
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