Scale-enhancing

Definition

Describes a project that is in the same risk class as the whole firm. That is, the project allows the firm to grow larger in the context of their current business rather than diversify into new businesses.

Investing Essentials

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


Term of the Day

Covenant
An agreed action to be undertaken (Positive) or not done (Negative). A breach of a covenant is a default.

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