Trading On Equity
Also called financial leverage. The use of borrower funds to magnify return. Trading profitably on the equity, also called favorable financial leverage, means that the borrowed funds generate a higher rate of return than the interest rate paid for the use of the money. The excess accrues to the benefit of the owner because it magnifies, or increases, his or her earnings.
Popular Real Estate Terms
The definition of the term abutment can be a structure in engineering meant to support the pressure of a bridge. It is also used for arches or spans in the construction of buildings. The ...
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Secondary written agreement to purchase real property in the event the initial contract is not signed. ...
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Expenditure paid to occupy property over a specified time period. ...
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