Negative gearing

Negative gearing: purchasing an investment with borrowed funds where the interest on the borrowing exceeds the income from the investment.
Net asset value: the value of a company, or managed fund, which is the assets less liabilities.

Negative gearing
Negative gearing is a form of financial leverage where an investor borrows money to buy an asset, but the income generated by that asset does not cover the interest on the loan.

See also: Debt ratio, Dividends, Gearing, Asset, Debt