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    what is the meaning of the word leverage

    +1  Views: 404 Answers: 1 Posted: 14 years ago

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    Leverage:  The use of various financial instruments of borrowed capital, such as margin to increase the potential return of an investment.


    Well, it may seem that way.  However, the knife is sharp on both sides.  While buying stocks on margin (borrowed funds) may increase your investment in a hurry, it could put you in the poor house just as quickly if the market goes against you.


     



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