High-Risk Investment

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August 31, 2024 4 min read Definitions

Leveraged Buy-Out: High-Risk Investment Strategy

Finance Investments Economics LBO Leveraged Buy-Out Debt Financing Private Equity High-Risk Investment

A leveraged buy-out (LBO) is a financial transaction where a company's equity is acquired primarily through borrowed funds. This strategy is high-risk due to the large proportion of debt financing.

August 31, 2024 4 min read Definitions

Speculative Investment: High-Risk, High-Reward Strategy

Investments Finance Speculative Investment High-Risk Investment Trading Financial Markets Investment Strategy

Speculative Investment involves making investment decisions based on the expectation of significant price increases. This high-risk, high-reward strategy can yield substantial returns but comes with considerable risk.