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INDIVIDUAL INVESTOR is a person that buys or sells securities for his/her own account. The individual investor is also called a retail investor or retail shareholder.

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LEVERAGE HYPOTHESIS is the theory that managers have incentive to avoid technical default of loan covenants because it could result in increases in the firm's cost of capital.

TARGET is the goal intended to be attained and which is believed to be attainable, e.g. sales target, margin target, or profit target.

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