Please use this identifier to cite or link to this item: http://hdl.handle.net/1959.14/102583
61 Visitors
79 Hits
8 Downloads
- Title
- Gearing and negative gearing
- Related
- Journal of law and financial management, Vol. 6, No. 1 (2007), p.24-29
- Related
- http://www.mgsm.edu.au/wps/wcm/connect/Internet/Root/research/publications/journals/jlfm/2007-june/
- Publisher
- Macquarie Graduate School of Management
- Date
- 2007
- Author/Creator
- Valentine, Tom
- Description
- The purpose of this paper is to clarify some aspects of geared investments which are investments partially financed from a loan. Gearing is a standard tool of investment and although it is usually applied to property or share portfolios, the approach can be applied to any asset. Some investors are resistant to it because they think it is risky, but the same people have often made large leveraged investments in the family home. The second section of the paper outlines the basics of gearing and the factors that affect the return earned on a leveraged asset holding. The third section demonstrates that a share portfolio can contain "hidden leverage". The fourth section looks at margin loans. The fifth section considers instruments which provide leverage without requiring an explicit loan. They are particularly useful for superannuation funds which are not permitted to borrow.
- Description
- 6 page(s)
- Subject Keyword
- investments
- Subject Keyword
- gearing
- Subject Keyword
- leverage
- Resource Type
- Journal Of Law And Financial Management Collection
- Resource Type
- journal article
- Organisation
- Macquarie University. Macquarie Graduate School of Management
- Identifier
- http://hdl.handle.net/1959.14/102583
- Identifier
- ISSN:1446-6899
- Identifier
- mq-20101202-102454
- Language
- eng
- Rights
- Publisher version archived with the permission of the publisher Macquarie Graduate School of Management, Macquarie University, NSW, Australia. This archived copy is available for individual, non-commercial use. Permission to use this version for other uses must be obtained from the publisher.
- Full Text
- Reviewed
-
-
