leverage

lev-er-age · noun

imported

Definitions

noun

  1. 1.

    The exertion of force by means of a lever or an object used as a lever.

  2. 2.

    To use borrowed capital for investment, expecting profits to be greater than the interest payable.

  3. 3.

    Power or ability to act or influence people, events, or decisions.

  4. 4.

    To use something to maximum advantage.

  5. 5.

    (finance) The use of borrowed capital to increase the potential return of an investment.

Phrases & expressions

  • •
    leverage ratio — the proportion of debt to equity in a company
  • •
    financial leverage — using borrowed money to amplify returns
  • •
    leverage one's position — to use one's status for advantage

Related words

Antonyms: disadvantage, weakness
See also: advantage, influence, lever, power
Synonyms: advantage, clout, influence, power

Etymology

From lever + -age (suffix denoting action or result). The word developed in English in the 18th century, with the financial sense emerging in the 20th century.