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LSDefine

Simple English definitions for legal terms

capital leverage

Read a random definition: journalist's privilege

A quick definition of capital leverage:

Capital leverage is when a business borrows money to make more money. They use the borrowed money to invest in things that they think will make a profit. The goal is to make more money than they have to pay back in interest. This is called leverage. It's like using a ladder to reach something high up. The borrowed money is the ladder that helps the business reach higher profits. However, if the investments don't make enough money, the business may have trouble paying back the borrowed money and could end up in financial trouble.

A more thorough explanation:

Definition: Capital leverage refers to the use of borrowed funds by a business to earn a higher return than the interest rate paid on the borrowed funds. It is a financial strategy that aims to increase profits by using debt to finance investments.

  • A company borrows money from a bank to invest in a new project that is expected to generate a return of 15%. The interest rate on the loan is 8%. By using capital leverage, the company can earn a profit of 7% (15% - 8%) on the borrowed funds.
  • An individual investor buys stocks on margin, which means they borrow money from a broker to purchase more shares than they could with their own funds. If the stock price increases, the investor can earn a higher return than if they had only invested their own money. However, if the stock price decreases, the investor may lose more money than they would have without using capital leverage.

These examples illustrate how capital leverage can be used to increase returns on investments. However, it is important to note that using debt to finance investments also increases the risk of losses if the investments do not perform as expected. Therefore, capital leverage should be used carefully and with a thorough understanding of the risks involved.

capital lease | capital loss

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18:41
I think I just wouldn’t reach out and if they ask for them then say that
Dkk
18:41
@tgm Yeah sounds good, say that if they ask
18:47
hey yall
18:47
im premed idk why im here
18:48
we’re like cool and sexy and fun I get it
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true i love ur user
18:49
thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
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