Difference between revisions of "Trading on equity"
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:[[Trading on equity]]. Earning more income on borrowed money than the related interest expense, thereby increasing the earnings for the owners of the business; also called leverage. | :[[Trading on equity]]. Earning more income on borrowed money than the related interest expense, thereby increasing the earnings for the owners of the business; also called leverage. | ||
− | [[Category: Accounting]][[Category:Articles] | + | [[Category: Accounting]][[Category:Articles]] |
Latest revision as of 19:25, 16 July 2020
Trading on equity is earning more income on borrowed money than the related interest expense, thereby increasing the earnings for the owners of the business; also called leverage.
Definitions
According to Managerial Accounting by Braun, Tietz (5th edition),
- Trading on equity. Earning more income on borrowed money than the related interest expense, thereby increasing the earnings for the owners of the business; also called leverage.