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Understanding Financial Leverage and Its Impact on Investors

Published on 22/12/2011 By D.R. O'Callaghan

by James Kobzeff Financial leverage is a term associated with financing that refers to the use of borrowed funds to acquire investment property. When compared to the value of the property, the amount of leverage increases as the amount of borrowed funds increases, and conversely, decreases when the amount of borrowed funds decreases. For example, [...]

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