For this purpose, borrowed capital may include long-term loans, debentures, and others. It shows what portion of the total capital used is provided by outsiders (i.e., entities other than ordinary shareholders who are the real owners of the company).

True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, his interview on CBS, or check out his speaker profile on the CFA Institute website.