Leverage

Quick meaning: Leverage is a noun meaning A force compounded by means of a lever rotating around a pivot.

Meaning

A force compounded by means of a lever rotating around a pivot.

More Meanings

1. (by extension) Any influence which is compounded or used to gain an advantage.
2. (finance) The debt-to-equity ratio.
3. (business) The ability to earn very high returns when operating at high-capacity utilization of a facility.
4. (statistics, regression analytics) The distance of between an independent observation and other observations.
5. (transitive, chiefly US, slang, business) To use; to exploit; to manipulate in order to take full advantage (of something).
6. (finance) The use of borrowed funds with a contractually determined return to increase the ability to invest and earn an expected higher return, but usually at high risk.

Example Sentences

A crowbar uses leverage to pry nails out of wood.

Try using competitors’ prices for leverage in the negotiation.

Leverage is great until something goes wrong with your investments and you still have to pay your debts.

Online margin trading is usually based on leverage, where the brokerage effectively lets you borrow more money than you have deposited as collateral.

Word Forms

• leverages
• leveraging
• leveraged

Synonyms for leverage

Depending on context, synonyms include exploit, use, gearing, purchase, leveraging.

Related Words

Related dictionary entries include purchase, tool, lever, crowbar, right-of-way, wand.

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