Gearing

Gearing

UK synonym for leverage. Indicates how much more an options investment can earn than an equity investment with the same initial capital outlay. The higher the gearing, the more volatile the option.

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Part of Speech: noun
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Industry/Domain: Banking
Category: Investment banking
Company: UBS
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Related terms

gearing

Banking; Investment banking

UK synonym for leverage. Indicates how much more an options investment can earn than an equity investment with the same initial capital outlay. The higher the gearing, the more ...

gear

Industrial machinery; Industrial lubricants

A machine part which transmits motion and force by means of successively engaging projections, called teeth. The smaller gear of a pair is called the pinion; the larger, the gear. ...

gearing

Economy; Economics

A company's debt expressed as a percentage of its equity; also known as leverage. (See also capital structure and leveraged buy-out. )

gearing

Economy; Forex

The ratio of debt to equity, usually the relationship between long-term borrowings and shareholders' funds.

gear

Mechanical equipment; General technical terms

A wheel with bumps called teeth around its rim. The teeth of one gear fit into the spaces between the teeth of another gear.

gearing

Automotive; Automobile

(1) The combination or system of gears or sprockets designed to transmit power. (2) The ratio between the drive gear and the driven gear.

dirty floating

Banking; Investment banking

Currency policy which in principle recognizes the free movement of exchange rates but where interventions are nonetheless made with some frequency in an attempt to influence the ...

economic viability

Banking; Investment banking

Credit system mainly used in property financing and defined as the burden on the borrower's income (expressed as a percentage) that the cost of a property will incur.

summary bill enforcement procedure

Banking; Investment banking

Especially rapid summary bankruptcy proceedings brought against bill and cheque debtors whose names are entered in the commercial register.

share index

Banking; Investment banking

Indicator showing changes in the average prices of shares or groups of shares on the stock market. In Switzerland the most commonly used equity price indices are the Swiss ...

benchmark

Banking; Investment banking

Reference parameter (e.g. a share index or an index portfolio) used to compare the performance of a portfolio. A benchmark that is an index is also called a reference index.