Leveraged Stock

Leveraged Stock - Leveraged Stock is stock financed with credit, such as that purchased on a margin account. A certificate obtained on credit, especially on a margin account. Generally, one purchases a leveraged stock with one's broker's money, with the stock and cash as collateral. This increases the stockowner's profit when the net value goes up and increases his or her debt to the broker when it goes down. Stock backed with credit, as in a margin account. Although not, strictly speaking, leveraged stock, securities are convertible into common stock to provide an extra degree of the leverage when bought on the margin.