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Leverage

By Pinyo • Mar 26th, 2008 • Category: L

Leverage, or financial leverage, is the practice of using borrowed fund to increase potential profit. For example, if you invest $10,000 and earned a 20% return, your profit is $2,000. However, if you borrow $50,000 at 10% interest rate and earned the same 20% return, your profit is $5,000.

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