Restrictive covenants

Definition:

Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Heavy

An equities market now dominated by sellers, or oversupply, resulting in falling prices. See: Overbought, resistance level, tired.

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