Understanding Leverage in Finance

Operating and Financial Leverages Leverage is a technique used in finance that can improve a company’s asset base, cash flow, and returns but also magnify any losses. Financial and operating leverage are the two most common kinds.  A company can enhance its financial leverage by issuing fixed-income securities or borrowing money from a financial institution. […]

MarkoVitz Theory

Harry Markowitz had a distinguished career in economics for decades before being awarded the Nobel Prize. Markowitz, who was born on August 24th, 1927 in Chicago, Illinois, was initially drawn to the fields of physics, astronomy, and philosophy, and he became a devoted follower of David Hume’s beliefs in his youth. Throughout his time as […]