leverage up

leverage up definition - business

leverage up

To increase the portion of debt in a firm's capital structure by issuing debt and using the proceeds to repurchase stock, or by financing any new expansion through debt. Firms generally decide to leverage up in an attempt to improve the market price of their stock, thereby fending off takeover attempts.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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