Leverage Investment – Defined In Simple Way
If you want to invest somewhere but you don’t have enough money then you can borrow money and invest it,this method is called leveraging.But you should make enough to pay the sum back along with interest to the person or bank from where you have borrowed,whatever you earn more than that is your income.
How it works : Well in simple words if you are able to get a better return on investment than what you have to pay on the debt you have taken you are on the gaining side but if you are not able to do it then it will make you loose the money.
Return From Investment – Interest On Debt = Profit/loss