Difference between revisions of "Trading on equity"
(Created page with "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 l...") |
|||
| Line 5: | Line 5: | ||
:[[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.
