If You Understand This Becoming Rich Seems Easy [Video]

– If You Understand This Becoming Rich Seems Easy –

In the world of finance, OPM or other people’s money is a slang term that is associated with financial leverage.

And by financial leverage we mean it’s borrowed capital that is used to increase the potential of the returns of an investment, which also increases the risk of that investment.

Other people’s money can be used by corporations, or by an individual, and whichever way it’s used, it can be considered a double-edged sword. In terms of risks and losses.

If an investment pushed by other people’s money becomes successful, then the profits from that investment are magnified more than what it could have been.

However, if the investment goes southwards, or hits rock bottom, then the risks are higher, causing the investor to incur steeper losses than when he used his finances.

However, other people’s money is still important as it plays a certain role in a company’s capital structure.

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DISCLAIMER: I’m not a financial adviser. These videos are for educational purposes only. No official financial advice is being given. Please always check with a professional before making any investments or financial decisions. Your investments are your sole responsibility, these videos merely share my own opinions with no guarantee of gain or losses.