Why Do We Use Leverage If It Increases the Risk

question 63

Essay

Why do we use leverage if it increases the risk of a firm?

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Definitions:

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, affecting attention and responding actions.

Adrenaline

A hormone and neurotransmitter also known as epinephrine, released in response to stress or excitement, causing increased heart rate and energy.

SSRI

A type of antidepressant called selective serotonin reuptake inhibitor, used to treat depression by increasing serotonin levels in the brain.

Serotonin

A neurotransmitter that plays a key role in mood regulation, digestion, sleep, and other bodily functions.