other people's money


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Other People's Money

Informal term for the use or investment of borrowed funds. For example, a bank uses OPM to lend to its borrowers as the money it uses for loans (theoretically) comes from its deposits.

other people's money (OPM)

A common expression used when talking about the multiplying effect of using borrowed funds to purchase property rather than paying all cash. Investors will say, “I'm using OPM for the deal.”

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