OSC Alerts Investors About Risk of Leveraged Investing

The recent issue of OSC Investor News cautions investors about the risks of leveraged investing. While we are pleased to see the OSC recognizing issues relating to leverage, we have some concerns about some statements in this Investor News piece. It warns investors that borrowing money to purchase investments increases risk and provides a mathematical example to demonstrate how losses are magnified if the investment goes down in value. It points out that leveraged investing can result in much greater losses than investing using one’s own cash…