What is Trading on Equity?
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Trading on equity is a financial process in which debt produces gain for shareholders of a company. Trading on equity happens when a company incurs new debt using bonds, loans, bonds or preferred stock. ... ' When the borrowed amount is modest, the company is 'trading on thick equity. '
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Trading on equity is a financial process in which debt produces gain for shareholders of a company. Trading on equity happens when a company incurs new debt using bonds, loans, bonds or preferred stock. ... Companies usually go this way to boost earnings per share.
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