Finance is the discipline of study that basically deals with money, management of money, and the value of money over time. It teaches us how to obtain the required fund at least possible cost and how to invest our available resources for maximum possible return. Finance intends to price assets based on their Rate of … Read more

Financial Leverage

Financial leverage is the degree to which an entity uses interest-bearing debt to finance its assets. The higher the share of debt financing in the capital structure of the company, the higher the financial leverage and also the financial risk. A high proportion of financial debt also means high-interest payments. Which may have a negative … Read more

Stockholder or Shareholder

[subtitleh2]What is a stockholder or shareholder?[/subtitleh2] A stockholder is an individual, company or any other entity who owns at least one or any number of share of a corporation’s capital stock. Is there any difference between stockholder and shareholder? The answer is NO. Both are same. In the United States, people love to name by … Read more

Line of credit

What is Line of credit (LOC)? A line of credit, also known as LOC is generally an unsecured loan. A LOC gives a borrower the right to borrow and draw funds at any time to meet immediate needs. A significant condition of a line of credit is it’s maximum limit. Borrower can take money out … Read more

What is Leverage? How does it work and what are the risks?

Financial Leverage

The term “financial leverage” is a recurring term in the business sector, which means the use of debt to finance business operations or investment. In this article, we will know what is the leverage, how it works and what are its advantages and its risks. What is leverage? Financial leverage is the use of debt … Read more