Business Studies, asked by NISHARV4579, 11 months ago

What Is Trading On Equity?

Answers

Answered by Anonymous
6

Answer:

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.

Answered by puja77
3

trading on equity means increase in profit earned by the equity shareholders due to the presence of fixed financial charges

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