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What is trading equity

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What is trading equity

Posted by Guntash Singh Randhawa 8 years ago

CBSE > Class 12 > Business Studies

1 answers

Priya Arora 8 years ago

Trading on equity refers to the increase in profits earned by the equity share holders due to presence of fixed financial charges.when the rate of earning on return on investment of a company is higher than the rate of interest on borrowed funds only then a company should opt for trading on equity.

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