Introduction to Financial Leverage

This article focus to explain Introduction to Financial Leverage, here major focus on financial Leverage in investment. In the event leverage is something you want to understand, comparing and contrasting this specific important financial concept mainly because it exists in both stock options and home mortgages might be helpful. Through the generations, leverage has made it possible for thousands of people to own homes that they could not have afforded without securing credit from a bank. This can be a most common example of financial leverage within the investment world, even though a lot of people probably wouldn’t think of the mortgage as an investment.