Leverage and Main Market: Difference between pages

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imported>Doug Williamson
(Create page. Source: LSE webpage http://www.londonstockexchange.com/companies-and-advisors/main-market/companies/primary-and-secondary-listing/listing-categories.htm)
 
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1.
''London Stock Exchange''


Debt divided by Debt plus Equity = D / ( D + E ).
The Main Market is London Stock Exchange’s international market for larger companies, also known as the 'Main list'.


 
Companies with Standard and Premium Listings are part of the Main Market.
'''Example'''
 
If the amounts of debt and equity were equal, then leverage under this definition would be calculated as:
 
1 / ( 1 + 1 ) = 50%.
 
 
2.
 
Gearing.
 
Leverage is based on the same inputs, but the calculation would be:
 
1 / 1 = 100%.
 
 
3.
 
To increase the level of gearing in an operational or financial structure. 
 
The intention of leveraging is to improve expected net results. 
 
The consequence of leveraging is normally to increase financial risk.
 
Many financial disasters have been a consequence of leveraging up excessively in this way in earlier periods.




== See also ==
== See also ==
* [[Debt]]
* [[Alternative Investment Market]]
* [[Deleverage]]
* [[London Stock Exchange]]
* [[Gearing]]
* [[Main Market]]
 
* [[Premium Listing]]
 
* [[Standard Listing]]
==Other links==
[http://www.treasurers.org/node/8012 Masterclass: Measuring financial risk, The Treasurer, July 2012]
 
[[Category:Corporate_finance]]

Revision as of 10:07, 9 September 2017

London Stock Exchange

The Main Market is London Stock Exchange’s international market for larger companies, also known as the 'Main list'.

Companies with Standard and Premium Listings are part of the Main Market.


See also

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