Business Studies, asked by JamalAhmed, 1 year ago

meaning of trading on equity

Answers

Answered by SnowySecret72

Trading on equity is the financial process of using debt to produce gain for the residual owners.

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Answered by gyana143

Trading on equity occurs when a corporation uses bonds, other debt, and preferred stock to increase its earnings on common stock. For example, a corporation might use long term debt to purchase assets that are expected to earn more than the interest on the debt.

I hope it helps you
thank you

gyana143: thank you very much

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