Leverage: An Important Tool

Bonds or debentures and preferred stocks are the instruments that provide leverage. So strong was the feeling against leverage that the issuance of senior securities by open-end investment companies was forbidden in the Investment Company Act, although bank loans might be contracted.

Most of the older closed-end investment companies were financed through issues of either debentures […]

Original post by Jimmy Atkinson and software by Elliott Back

Tags: No Tags