Most people have gone to an automobile dealership and admired the new vehicles available to purchase. A significant number of car shoppers have left the lot with a brand new car, even though they could not afford to pay for that car in cash. To obtain the car, these buyers borrowed the money. They then gave the borrowed money to the car dealer in exchange for the vehicle.
Read more: Leverage: What It Is And How It Works | Investopedia http://www.investopedia.com/articles/investing/073113/leverage-what-it-and-how-it-works.asp#ixzz4GkSqUXYL
Follow us: Investopedia on Facebook