financial leverage definition
Using debt (such as loans and bonds) to acquire more assets than would be possible by using only owners' funds. Also referred to as trading on equity.
Using debt (such as loans and bonds) to acquire more assets than would be possible by using only owners' funds. Also referred to as trading on equity.
Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Read more about the author.