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  2. Dictionary

    lev·er·age
    [ˈlev(ə)rij, ˈlēv(ə)rij]
    noun
    leverage (noun)
    1. the exertion of force by means of a lever or an object used in the manner of a lever:
      "my spade hit something solid that wouldn't respond to leverage"
    2. finance
      the ratio of a company's loan capital (debt) to the value of its common stock (equity).
      • the use of credit or borrowed capital to increase the earning potential of stock.
    verb
    leverage (verb) · leverages (third person present) · leveraged (past tense) · leveraged (past participle) · leveraging (present participle)
    1. use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable:
      "without clear legal title to their assets, they own property that cannot be leveraged as collateral for loans" · "you can leverage your stock portfolio and diversify into real estate"
    2. use (something) to maximum advantage:
      "the organization needs to leverage its key resources"
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  3. People also ask
    What do you mean by leverage?1. the action of a lever. 2. the mechanical advantage or power gained by using a lever. 3. power or ability to act effectively or to influence people. 4. the use of a small initial investment to gain a relatively high return. 5. to exert power or influence on. 6. to provide with leverage. 7. to speculate in (invested funds) by using leverage.
    What does 'highly leveraged' mean?When one refers to a company, property, or investment as "highly leveraged," it means that the item has more debt than equity. There is an entire suite of leverage financial ratios used to calculate how much debt a company is leveraging in an attempt to maximize profits. Here are several common leverage ratios.
    What is leverage investing & how does it work?Leveraged investing: Investors can use leverage to bolster their buying power. Professional traders do what's called "buying on margin" to use borrowed funds to have more money to invest in. In turn, it can lead to greater returns. When you buy on margin, you draw from loaned money to buy securities in a margin account.
    Who uses leverage?Leverage is used by entrepreneurs such as CEOs of corporations and founders of startups, businesses of all sizes, professional traders, and everyday individuals. Essentially, anyone who has access to borrowed capital to boost their returns on the investment of an asset uses leverage.
     
  4. Leverage can mean:
    1. The action of a lever or the mechanical advantage gained by it.
    2. Power or effectiveness, such as gaining political leverage.
    3. The use of credit to enhance one's speculative capacity1.
    4. To use something you already have to achieve something new or better, as in gaining a market advantage2.
    Learn more:
    1 : the action of a lever or the mechanical advantage gained by it 2 : power, effectiveness trying to gain more political leverage 3 : the use of credit to enhance one's speculative capacity
    www.merriam-webster.com/dictionary/leverage
    leverage verb [T] (USE) to use something that you already have in order to achieve something new or better: We can gain a market advantage by leveraging our network of partners.
    dictionary.cambridge.org/us/dictionary/english/lever…
     
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