Archive for the 'Uncategorized' Category

Three Types of Leverage for This Volatile Market

When the market goes up, we often wish we could get returns on a higher amount of investment than we have at our disposal. In fact, we can. Getting returns (or losses, of course) on more money than your apparent stake is called leverage.
I know of at least three ways individual investors can use it. [...]

What Does Leverage Mean?

1. The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.
2. The amount of debt used to finance a firm’s assets. A firm with significantly more debt than equity is considered to be highly leveraged. Leverage is most commonly used in real estate transactions [...]