FINANCIAL GEARING Definition

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FINANCIAL GEARING reflects any borrowing that the company may have undertaken. Operating income will become more volatile with increased financial gearing (borrowing). Thus the shares will have more risk attached to them. More borrowing, more risk. See GEARING and OPERATIONAL GEARING.

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MONETARY is anything pertaining to or having to do with money, money creation, money supply, and the government management of money.

CONCENTRATION RISK is the risk that an investor will suffer from lack of diversification, investing too heavily in one industry, one geographic area or one type of security.

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