Trading on equity
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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.[[Category:Articles]
