trading on the equity

Definition

Borrowing funds to increase capital investment with the hope that the business will be able to generate returns in excess of the interest charges.

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Related Terms

equity - More

Popular 'Accounting' Terms

current ratio
equity
working capital
asset
EBITDA

revenue
net income
negotiable
net profit
net worth

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trading on the equity is ...

... part of the Accounting and Lending & Credit subjects.

Nearby Terms

trading curb
trading dividends
trading floor
trading halt
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trading on the equity
trading pattern
trading post
trading profit
trading range
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