Common use of Geared Investments Clause in Contracts

Geared Investments. Many companies use gearing or borrowing as part of their strategy and may borrow to make investments. The effect of gearing on investment trusts and investment companies may cause the share price to become more volatile than the value of their underlying investments and may result in the share price of shares in these companies being subject to sudden or large falls. It may also mean that you could get nothing back when you try to sell such shares.

Geared Investments. Many All companies are likely to use gearing or borrowing as part of their investment strategy and may choose to borrow money (gearing) to make investments. The effect of gearing on investment trusts and investment companies may cause the share price to become more volatile than the asset value of their underlying investments and may result in the share price of shares in these companies being subject to sudden or large falls. It Dependent on the level of gearing, it may also mean that you could get nothing back when you try to sell such sharesback.