DOUBLE LEVERAGE Definition

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DOUBLE LEVERAGE usually refers to a situation where a holding company raises debt and downstreams it as equity capital, or subordinated debt, to a subsidiary, i.e. it is the use of debt by both the parent company and the subsidiary, in combination with the companys equity capital, to finance the assets of the subsidiary.

Learn new Accounting Terms

COMPOUND JOURNAL ENTRY is a journal entry that involves more than one debit or more than one credit or both.

MISCELLANEOUS is a grouping consisting of a haphazard assortment of different kinds.

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