Financial Leverage (Trading on Equity) Explained in One Minute

The idea of borrowing money to buy more or better assets may sound tempting but financial leverage (also known as trading on equity) can be quite dangerous.

Is financial leverage a good option?

It definitely can be but it's certainly not for everyone.

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[OneMinuteEconomics]

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[sharperguy]

You didn't mention the possibility that if the price drops too quickly, you may end up selling the shares below the margin call price, and still owe the broker money even after losing all your shares.

[OneMinuteEconomics]

If you liked this video, I think you'll love my personal finance book (Wealth Management 2.0) that has been written specifically for today's ultra-complex investment landscape and is available over at:

[bmo]

i think this is called buying on margin? Which was a big factor of the financial collapse which lead to the great depression.

[infobridgeTM]

which software do you use to make these animated videos?

[dantebernal]

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[Skannerz]

That was the most complicated minute and 29 seconds of my entire life...😐

[WaleedALRajhi]

Good explaining thank you keep going

Waleed ALRajhi

[soundarya]

THis channel is AWESOME...wonder why u guys dont have a million views already....sharing this vid to poeple i know right away!! Keep going xD

[IsmaelKrueger-mr]

From Dulce! Who’s first to check out this wallet? (clean party soccer advance audit clean evil finish tonight involve whip action).

[williamfigueroa]

Please help my professor's instructing skills.

[codingsingh]

10 times more would be 1000 not 10000 I guess

[nmbsf]

5x isn’t 5 times more, that would be 6x.. you would rather say 4 times more.. how are you trying to teach economics this way?