In general, the use of borrowed capital to raise equity capital to finance a transaction in the course of leverage (investing with borrowed money as a way to amplify potential gains, but at the risk of greater losses). – In the case of investment funds, exceeding the investment limit (hundred percent limit). As a matter of principle, fund management may not take on any risks that exceed the fund volume. This is usually closely monitored by the supervisory authorities – see deleveraging, derivatives, domino effect, margin, return efficiency, leverage, hedge fund risks, leverage, leverage ratio, ranking theory, spread bets.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
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https://www.gerhardmerk.de/