OPM

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OPM

Stands for "other people's money," which refers to borrowed funds used to increase the return on invested capital.

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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