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Wednesday, March 12, 2014

Learn How to Buy More Investments Using O.P.M. (Other Peoples Money)

In finance, the term Leverage means to use credit or borrowed funds to buy an investment or a business .
 An investor or company will often use leverage to buy an investment or asset anticipating the ROI (return on investment) to be greater than the loan and interest owed. This could lead them to gain a greater profit than they would have gained if leverage was not used. Many financial experts believe that investors and corporations should avoid leveraging, because during an economic or business downturn investors or corporations with leverage assets and investments will often fall into financial distress. This is because they are unable to pay back the loan and interest owed. Yet many financial experts believe leveraging is a necessary evil because it allows investors and corporations to make large amounts of profits with a small initial investment.

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