Leveraged equity. Stock in a firm that relies on financial leverage. Holders of leveraged equity experience the benefits and costs of using debt.

What does levered equity mean?

Stock in a publicly-traded company with a significant amount of debt. Leveraged equity carries the same risk as debt; that is, the company must service the debt to remain out of bankruptcy.

What is levered vs unlevered equity?

Leverage refers to the amount of debt a company has. For example, a company may buy a property for $3 million. ... Unlevered equity is the lack of debt. If the company paid $3 million of its own cash for the property, the building is unlevered and the company has unlevered equity in it.