Next Up Previous Contents Index
Next: Second prelude: A Up: The New Technological Previous: Recapitulation

Theme 2: Leverage vs. debt


Leverage in finance is the control of assets which exceed the direct capital invested in their control. Leverage usually involves the assumption of debt, but leverage is not synonymous with debt. Inherent leverage, leverage without debt, is central to many investments, and is essential to understanding the New Technological Corporation.

Editor: John Walker