Leverage

Tuesday 15^th November 2016

Leverage - /ˈliːv(ə)rɪdʒ/

Noun
1a) The exertion of force by means of a lever

1b) Mechanical advantage gained by leverage

1c) The power to influence a person or situation

2a) Finance - The ratio of a company's loan capital (debt) to the value of its ordinary shares (equity); gearing.

2b) The use of credit or borrowed capital to increase the earning potential of shares.

Verb

1) Usually as adjective leveraged Use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable

2) Use (something) to maximum advantage

Example sentences

Noun

‘Use a metal bar to increase the leverage’

‘Use a metal bar to increase the leverage’

‘The right wing had lost much of its political leverage in the Assembly’‘Reckless companies used leverage to do $3 trillion of mergers and acquisitions in 2006, at the top of the market’

Verb

‘A leveraged takeover bid’

‘The organization needs to leverage its key resources’

Origin

No history / origin found.

Thanks to: www.oxforddictionaries.com