Business Studies, asked by adking20003, 8 months ago

can anyone explain trading on equity

Answers

Answered by Shinchanboy03

Answer:

Trading on equity occurs when a company incurs new debt (such as from bonds, loans, or preferred stock) to acquire assets on which it can earn a return greater than the interest cost of the debt. ... It may allow an entity to earn a disproportionate amount on its assets. Favorable tax treatment.

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