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Leverage

When a business borrows money so it can reinvest it in hopes of getting a higher return, it's called leverage. Using loaned money, the company can make larger investments, and, therefore, receive larger returns. At least, that's the theory. However, along with leverage comes risk, because it not only magnifies the potential profit, but the potential loss as well.

Here¿s how it could work. Say a company has $10 million in the bank. It can leverage itself by borrowing another $20 million. Now that company has $30 million to play with, and, if it plays its cards right, the return on its investment will outpace the interest it has to pay on its debt.

Therein, lurks the risk. If the company's investments don't bring in enough money to pay the debt and principal and then some, it's stuck with debt that far exceeds its assets. Not good. A company's leverage can be measured by its debt to equity ratio. The more debt a company has compared to its equity, the more leveraged (and vulnerable to bankruptcy) it's considered.

Companies aren't the only ones affected by leverage. When you buy stocks on margin, borrowing extra money from your broker to invest in more stocks than you could have on your own, you¿re using leverage. Again, the larger investment might mean more profits when you sell, but there's also a risk that you'll lose money and you'll lose a lot more than if you had used your own funds to invest.

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Moffitt Cancer Center Joins National Campaign To Implore Americans To Donate $1 To Accelerate Cancer Research

 
Comtex
 

TAMPA, Fla., May 9, 2008 /PRNewswire via COMTEX News Network/ ----The Cancer Research Alliance, an organization comprised of 12 of the nation's best cancer centers including Moffitt Cancer Center, is asking all 303 million Americans to exercise their power over cancer by stepping up and donating $1 to cancer research efforts this Mother's Day through Father's Day.

The campaign, dubbed the "Infinite Power of One(TM)" campaign has two key goals: to activate Americans everywhere to take matters into their own hands, join together and exercise their collective power over cancer, and second, to raise much needed dollars to accelerate innovative cancer research at the participating cancer centers.

The public can join the "Infinite Power of One(TM)" campaign by visiting the campaign's sponsor, www.celebrations.com from May 11 through June 15 to donate. After donating, each person will be asked to add his or her own photo to the "Infinite Power of One" Healing Mosaic to celebrate the infinite power that one person and one dollar can make on our health. Proceeds will benefit cancer research at all member cancer centers.

Located in Tampa, Florida, Moffitt Cancer Center (www.moffitt.org) is the only Florida-based cancer center with the NCI designation as a Comprehensive Cancer Center for its excellence in research and contributions to clinical trials, prevention and cancer control. Moffitt currently has 15 affiliates in Florida, one in Georgia and two in Puerto Rico. Additionally, Moffitt is a member of the National Comprehensive Cancer Network, a prestigious alliance of the country's leading cancer centers, and is listed in U.S. News & World Report as one of "America's Best Hospitals" for cancer, as well as for ear, nose and throat. Moffitt's sole mission is to contribute to the prevention and cure of cancer.

ABOUT THE CANCER RESEARCH ALLIANCE

The Cancer Research Alliance (CRA) is a 501(c) (3) nonprofit organization comprised of 12 of the nation's top cancer centers. The CRA was founded in 2006 as a way to unite the nation's centers in national outreach campaigns to accelerate promising cancer research initiatives at the participating institutions. To learn more about the Cancer Research Alliance, log onto www.cancerresearchalliance.org

SOURCE Moffitt Cancer Center

http://www.moffitt.org 
Copyright (C) 2008 PR Newswire. All rights reserved

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