How are you everyone?Today I will discuss with you about what is financial leverage? . I am young and my experience is very little so please forgive me if there are any mistake.

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What is financial leverage?
Financial leverage is the concept of using borrowed capital as a source of funding. Leverage is often used when businesses invest in themselves for expansion, acquisitions or other growth methods.
Leverage is an investment strategy that uses borrowed money—specifically, the use of different financial instruments or borrowed capital—to increase the potential return on an investment.
Understanding financial leverage
Leverage is the use of debt or borrowed capital to undertake an investment or project. It is generally used to boost the equity base of an entity. The concept of leverage is used by both investors and companies.

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Investors use leverage to significantly increase the returns that can be provided on an investment. They leverage their investments using various instruments including options, futures and margin accounts.
Companies can use leverage to finance their assets. In other words, companies can use debt financing to invest in business operations to influence growth rather than issuing stock to raise capital.
Investors who are not comfortable using direct leverage have several ways to access leverage indirectly. They can invest in companies that use leverage to finance or expand operations in the ordinary course of their business—without increasing their expenses.
Today's discussion ends here. I hope you find it interesting and able to understand. Share your thoughts on today's topic. Wishes and blessings to all.