Leverage

 Leverage refers to the use of borrowed money or other financial resources to increase the potential return of an investment or business. In simple terms, it means using a small amount of your own capital alongside borrowed funds to control a larger investment.

It is commonly used by businesses to expand operations, invest in new projects, or grow without requiring the full amount of capital upfront. Investors also use leverage to increase their purchasing power in markets such as shares, property, or trading.

While leverage can enhance returns and accelerate growth, it also increases financial risk. If the investment performs poorly, losses are also magnified, and borrowed funds must still be repaid.

Responsible use of leverage is therefore important to maintain financial stability and manage risk effectively.