In finance, leverage (sometimes referred to as gearing in the United Kingdom and Australia) is a general term for any technique to multiply gains and losses. Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives. Important examples are: A public corporation may leverage its equity by borrowing money. The more it borrows, the less equity capital it needs, so any profits or losses are shared among a smaller base and are proportionately larger as a result.
You may also like
About the author
Information to enrich your life.
WELCOME TO RICHTOPIA
- 2,302,920 all-time users
WHAT IS RICHTOPIA?
WOMEN IN LEADERSHIP
- Authors Top 200: From J.K. Rowling to T. Harv Eker, These Are the Most Influential Authors in the World
- 11 Amazing Examples of Disruptive Technology
- Review of the 6 Major Blockchain Protocols
- Women Leaders Top 250: From Melinda Gates to Michelle Obama, These Are the Most Influential Women in the World
- Africa Exclusive: Property Investment in Lagos, Nigeria
- Top 100 Blockchain Insiders: From Marc Andreessen to Vitalik Buterin, These Are the Most Influential People in the Crypto Sphere
- Top 20 Most Sustainable Multinational Corporations Worldwide
- Top 100 Blockchain Organisations: From CoinDesk to BitPay, These Are the Most Influential Organisations in the Distributed Ledger Space
- Economists Top 100: From Paul Krugman to Michael Porter, These Are the Most Influential Economists in the World