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Your Friend David Tries to Write Down Everything the Professor

question 61

Essay

Your friend David tries to write down everything the professor says because he has difficulty differentiating between what is and is not important. What advice would you give him?


Definitions:

Balance Sheet

A financial statement that shows assets and liabilities at one point in time.

Profits

The financial gain realized when the revenues of a business exceed the costs and expenses related to its operation.

Losses

The negative difference between the cost of investment and its current value or selling price.

Leverage

In finance, the use of borrowed funds to increase investment potential or, in a broader sense, using a small initial investment to gain a high return.

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