- The definition of leverage is the action of a lever, or the power to influence people, events or things.
- An example of leverage is the motion of a seesaw.
- An example of leverage is being the only person running for class president.
Leverage is defined as to support, or is a financial term that means to take action to be more financially secure.
- Help balance a company’s debt
- Make profits appear to be larger
- Provide financial opportunities for a company by making it more financially appealing to investors and the patrons of the company
- An example of leverage is to financially back up a new company.
- An example of leverage is to buy fixed assets, or take money from another company or individual in the form of a loan that can be used to help generate profits.
This seesaw is an example of leverage.
leverage definition by Webster's New World
- the action of a lever
- the increased force resulting from this
- means of accomplishing some purpose
leverage definition by American Heritage Dictionary
- a. The action of a lever.b. The mechanical advantage of a lever.
- Positional advantage; power to act effectively: “started his . . . career with far more social leverage than his father had enjoyed” (Doris Kearns Goodwin).
- The use of credit or borrowed funds to improve one's speculative capacity and increase the rate of return from an investment, as in buying securities on margin.
- a. To provide (a company) with leverage.b. To supplement (money, for example) with leverage.
- To improve or enhance: “It makes more sense to be able to leverage what we [public radio stations] do in a more effective way to our listeners” (Delano Lewis).
leverage - Business Definition
leverage - Computer Definition
A euphemism for reuse. A considerable number of definitions in this book are leveraged from other books I have written for Wiley. I spent so much time writing these beautifully worded definitions over the last 10 years that I figured there was no point in trying to reword them and twist them out of shape in the process. Some things just don't make sense. See also euphemism.
leverage - Cultural Definition
The amount in which a purchase is paid for in borrowed money. The greater the leverage, the greater the possible gain or potential loss.
leverage - Investment & Finance Definition
- The amount of debt a company has. A highly-leveraged company has a relatively large amount of debt when compared to the level of assets it owns. Although becoming highly leveraged can create significant profits if things go according to plan, it can severely hamper a company that is caught in a slowing market or experiences unanticipated competition.
- To purchase stocks or other investments by using borrowed funds (on margin). An investor who borrows money from his or her broker to purchase stocks uses leverage in order to increase his or her potential gain. However, if the investment declines in value, then the amount of money the investor loses likely increases well.
leverage - Legal Definition
- Generally, the use of borrowed money to engage in transactions with a high rate of return that will allow repayment of the loan.
- The ratio between a company’s debt and equity.