An incisive guide that shows investors how to play by the rules, reduce the risks, and multiply their earnings using leveraged investments. The first accessible treatment of basic leveraging principles investors can apply to a wide range of investments - how to exploit the full range of leverage-based instruments such as stock options, commodity futures, index options, options on futures, and financial futures. The book explains the advantages and drawbacks of each type of leveraged investment and shows how the mechanics of the leverage can be manipulated to minimize risk.
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In clear, direct prose, financial planner Krefetz gives an absorbing analysis and how-to advice regarding the money game of our time: the use of investment "leverage" by borrowing up-front money to increase holdings and eventual profit. The principle is applicable, the author shows, to the whole range of investment vehiclesreal estate (its depreciation factor makes it best of all, according to Krefetz), stocks (including "margin" buying made infamous in the 1929 crash), bonds (also considered are "glamour" convertibles), financial futures, warrants and indexes (all risky but potentially lucrative), and the special worlds of gold and foreign exchange. Crucial, it is made clear here, is the cost of money (interest) with which to pry the lever. Most welcome for some readers will be an "addendum" on sources of credit. There is also a glossary of financial terms. 25,000 ad/promo. January 9
Copyright 1985 Reed Business Information, Inc.
Despite the negative connotations, leverage (or "controlling a lot of borrowed money by putting up a little of one's own") does not always involve high risk. Convertible bonds and real estate are two examples. But most uses of leverage offer the opportunity for good gains and the chance of severe losses. Among the other leveraged instruments Krefetz covers are: stocks, bonds, foreign exchange, financial futures, options on stocks, and stock index options and futures. Futures and options can be used conservatively, but, as is true of all these instruments, the more conservatively they're used, the less leverage they offer. While Krefetz continually considers risk, tax considerations are given short shrift, and the treatment of futures, options, and foreign exchange is too cursory to use as a trading guide. Still, this book will do as a general "how-to" of leverage-based instruments. Alex Wen ner, Indiana Univ. Lib., Bloomington
Copyright 1986 Reed Business Information, Inc.
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