Investment Banking

Leverage

Leverage refers to the use of various financial instruments or borrowed capital—in essence, debt—to increase the potential return of an investment. It is a powerful tool employed in finance, investments, and business operations, amplifying both potential gains and potential losses. By studying leverage, individuals will learn how to maximize investment returns, understand the associated risks, and become proficient in analyzing leverage's impact on company capital structures. The subject encompasses both theoretical concepts and practical applications, incorporating risk management strategies and regulatory frameworks.