Leveraged investing in common shares is expected to increase your net worth.

Question

Quizplus · Accepted Answer

Leveraged investing in common shares involves using borrowed funds to invest in the stock market. If the stock price increases, the investor can earn a higher return on their initial investment and pay back the borrowed funds with the profits. This can lead to an increase in the investor's net worth. However, there is also a higher level of risk involved with leveraged investing, as losses can exceed the initial investment if the stock price decreases.

Leveraged Investing in Common Shares Is Expected to Increase Your