The analogies you use from traditional finance help me understand token burns: inflation, buyback, stock splits, and leverage.

Your description of leverage is accurate. I think that's what it truly is:

. . . the taking on debt to purchase an asset in hopes of future gain is what leverage is.

And then the role of collateral in acquiring debt. I am now thinking of a huge unproductive asset of our school left unutilized due to fear and lack of financial IQ on the part of the administration and members of the BOT.

Yes, we need working capital to grow both our active and passive income as an institution and I hope in the coming months, I will be able to convince them.

I want to end with this paragraph to serve as my notes:

One of the services banks provide is to take assets and turn them into working capital. It does this through offering credit, another term for debt. At that point, entrepreneurs and business executives utilize the resources to grow their endeavors, providing greater economic productivity than was started.

Thanks!

!PIZZA

!CTP

Posted Using LeoFinance ^Beta