What is the meaning of Gearing?

Buy a house for £100, 000 with a deposit. Of £10, 000 and the rest as a mortgage. Six months later, sell it for £150, 000 and you've made 400% profit on your original investment: that's' Gearing'. Of course, it can work the other way too!

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APABarry Goldsmith. (2010). gearing. Retrieved September 22, 2026, from http://smartdefine.org/gearing/definitions/1154829
ChicagoBarry Goldsmith. 2010. "gearing" http://smartdefine.org/gearing/definitions/1154829 (accessed September 22, 2026).
HarvardBarry Goldsmith 2010, gearing, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/gearing/definitions/1154829>.
MLABarry Goldsmith. "gearing" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/gearing/definitions/1154829>
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