Dictionary of Finance and Investment Terms: leveraged stock
leveraged stock
stock financed with credit, as in a margin account. Although not, strictly speaking, leveraged stock, securities that are convertible into common stock provide an extra degree of leverage when bought on margin. Assuming the purchase price is reasonably close to the investment value and conversion value, the downside risk is no greater than it would be with the same company's common stock, whereas the appreciation value is much greater.
