14 results for: leverage Browse Nearby Entries
Dictionary.com Unabridged (v 1.1) - Cite This Source - Share This
lev·er·age    Audio Help   [lev-er-ij, lee-ver-] Pronunciation Key noun, verb, -aged, -ag·ing.
–noun
1.the action of a lever.
2.the mechanical advantage or power gained by using a lever.
3.power or ability to act or to influence people, events, decisions, etc.; sway: Being the only industry in town gave the company considerable leverage in its union negotiations.
4.the use of a small initial investment, credit, or borrowed funds to gain a very high return in relation to one's investment, to control a much larger investment, or to reduce one's own liability for any loss.
–verb (used with object)
5.to exert power or influence on.
6.to provide with leverage.
7.to invest or arrange (invested funds) using leverage.

[Origin: 1715–25; lever + -age]
Dictionary.com Unabridged (v 1.1)
Based on the Random House Unabridged Dictionary, © Random House, Inc. 2006.
Encyclopædia Britannica, Inc.
leverage

To learn more about leverage visit Britannica.com

© 2008 Encyclopædia Britannica, Inc.
American Heritage Dictionary - Cite This Source - Share This
lev·er·age    Audio Help   (lěv'ər-ĭj, lē'vər-)  Pronunciation Key 
n.  
    1. The action of a lever.
    2. The mechanical advantage of a lever.
  1. Positional advantage; power to act effectively: "started his . . . career with far more social leverage than his father had enjoyed" (Doris Kearns Goodwin).
  2. 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.

tr.v.   lev·er·aged, lev·er·ag·ing, lev·er·ag·es
    1. To provide (a company) with leverage.
    2. To supplement (money, for example) with leverage.
  1. 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).

(Download Now or Buy the Book)
The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2006 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
WordNet - Cite This Source - Share This
leverage

noun
1. the mechanical advantage gained by being in a position to use a lever 
2. strategic advantage; power to act effectively; "relatively small groups can sometimes exert immense political leverage" 
3. investing with borrowed money as a way to amplify potential gains (at the risk of greater losses) 

verb
1. supplement with leverage; "leverage the money that is already available" 
2. provide with leverage; "We need to leverage this company" 

WordNet® 3.0, © 2006 by Princeton University.
Kernerman English Multilingual Dictionary - Cite This Source - Share This
ˈleverage1 [-ridʒ] noun
the power gained by the use of a lever
Arabic: قُوَّة الرافِعَه
Chinese (Simplified): 杠杆率, 杠杆作用
Chinese (Traditional): 杠杆率, 杠杆作用
Czech: síla páky
Danish: vægtstangskraft
Dutch: hefboomkracht
Estonian: kangi tõstejõud
Finnish: vipuvoima
French: force (de levier)
German: die Hebelkraft
Greek: η δύναμη που ασκείται με τη χρήση μοχλού
Hungarian: emelőerő
Icelandic: vogarafl
Indonesian: pengungkitan
Italian: leva
Japanese: てこの作用
Korean: 지레의 작용; 지레 장치
Latvian: sviras darbība, *celtspēja
Lithuanian: sverto, *svirties keliamoji galia
Norwegian: vektstangkraft
Polish: siła dźwigni, wpływ
Portuguese (Brazil): força de alavanca
Portuguese (Portugal): poder
Romanian: forţă (a pârghiei)
Russian: усилие рычага
Slovak: sila páky
Slovenian: moč vzvoda
Spanish: acción de palanca
Swedish: hävstångskraft
Turkish: kaldıraç gücü
ˈleverage2 [-ridʒ] noun
power that can be used to influence someone's actions or decisions
Example: The public has some leverage with their representatives in the Senate.
Arabic: نُفوذ
Chinese (Simplified): 优势,力量
Chinese (Traditional): 优勢,力量
Czech: vliv
Danish: indflydelse
Estonian: mõjuvõim
Greek: ισχύς, επιρροή
Hungarian: befolyás
Indonesian: pengaruh
Italian: influenza, autorità
Latvian: iespaids (mērķa sasniegšanai)
Lithuanian: įtaka, poveikio galia
Norwegian: innflytelse, makt
Polish: wpływy
Russian: средство для достижения цели; влияние
Slovak: vplyv
Slovenian: vpliv
Spanish: influencias
Swedish: makt, inflytande
Turkish: nüfuz, güç
See also: lever, "leverage" in any language

Kernerman English Multilingual Dictionary, © 2000-2006 K Dictionaries Ltd.
American Heritage New Dictionary of Cultural Literacy, Third Edition - Cite This Source - Share This
leverage

The amount in which a purchase is paid for in borrowed money. The greater the leverage, the greater the possible gain or potential loss.


[Chapter:] Business and Economics


The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
Investopedia - Cite This Source - Share This

Leverage

1. The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.

2. The amount of debt used to finance a firm's assets. A firm with significantly more debt than equity is considered to be highly leveraged.

Leverage helps both the investor and the firm to invest or operate. It, however, comes with greater risk. If an investor uses leverage to make an investment and the investment moves against the investor, his or her loss is much greater amount than it would've been if the investment were not leveraged - leverage magnifies not only gains but also losses. In the business world, a company can use leverage to generate shareholder wealth, but if it is fails to do so, the interest expense and credit risk of default destroys shareholder value.

Investopedia Commentary


1. Leverage can be created through options, futures, margin and other financial instruments. For example, say you have $1,000 to invest. This amount could be invested in 10 shares of Microsoft stock, but to increase leverage, you could invest the $1,000 in, say, five options contracts. You would then control 500 shares rather than 10.

2. Most companies use debt to finance operations. By doing so a company increases its leverage because it can invest in business operations without increasing its equity. For example if a company formed with an investment of $5 million from investors, the equity in the company is $5 million and this is the money it uses to operate. If the company uses debt financing by borrowing $20 million, the company now has $25 million to invest in business operations, and more opportunity to increase value for shareholders.

Related Links

When Companies Borrow Money
Debt Reckoning
Margin Trading Tutorial

See also: Deleverage, Derivative, Futures, Leveraged Buyout, Margin, Operating Leverage, Options, Risk/Return Tradeoff

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
Wallstreet Words - Cite This Source - Share This
leverage
The use of fixed costs in order to increase the rate of return from an investment. One example of leverage is buying securities on margin. While leverage can operate toincrease rates of return, it also increases the amount of risk inherent in an investment. See also financial leverage, operating leverage.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott.
Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company.
Merriam-Webster's Dictionary of Law - Cite This Source - Share This
Main Entry: le·ver·age
Pronunciation: 'le-vrij, -v&-rij
Function: noun
: the use of credit to enhance one's speculative capacity

Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
Merriam-Webster's Dictionary of Law - Cite This Source - Share This
Main Entry: le·ver·age
Pronunciation: 'le-vrij, -v&-rij
Function: noun
: the use of credit to enhance one's speculative capacity

Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
Merriam-Webster's Dictionary of Law - Cite This Source - Share This
Main Entry: leverage
Function: transitive verb
Inflected Forms: -aged; -ag·ing
: to provide (as a corporation) or supplement (as money) with leverage

Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
Merriam-Webster's Dictionary of Law - Cite This Source - Share This
Main Entry: leverage
Function: transitive verb
Inflected Forms: -aged; -ag·ing
: to provide (as a corporation) or supplement (as money) with leverage

Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
Webster's Revised Unabridged Dictionary - Cite This Source - Share This

Leverage

Lev"er*age\ (l[e^]v"[~e]r*[asl]j or l[=e]"v[~e]r*[asl]j), n. The action of a lever; mechanical advantage gained by the lever.

Leverage of a couple (Mech.), the perpendicular distance between the lines of action of two forces which act in parallel and opposite directions.

Leverage of a force, the perpendicular distance from the line in which a force acts upon a body to a point about which the body may be supposed to turn.

Webster's Revised Unabridged Dictionary, © 1996, 1998 MICRA, Inc.
On-line Medical Dictionary - Cite This Source - Share This

leverage

leverage: in CancerWEB's On-line Medical Dictionary

On-line Medical Dictionary, © 1997-98 Academic Medical Publishing & CancerWEB
Browse Nearby Entries:

levels of significance
levels of significance's
levels'
leven
leven, loch
lever
lever action
lever escapement
lever hang
lever lock
lever scale
lever tumbler
lever's
lever, charles james
lever-action
leveraction
leverage
leverage up
leverage's
leveraged
leveraged buyout
leveraged company
leveraged esop
leveraged investment comp..
leveraged lease
leveraged recapitalizatio..
leverages
leverages'
leveraging
levered
leveret
leveret's
leverets

View results from: Dictionary | Thesaurus | Encyclopedia | All Reference | the Web

Share This:   Share This: del.icio.usShare This: digg.comShare This: FacebookShare This: furl.netShare This: www.netscape.comShare This: myweb2.search.yahoo.comShare This: www.stumbleupon.comShare This: www.google.comShare This: www.technorati.comShare This: blinklist.comShare This: newsvine.comShare This: ma.gnolia.comShare This: reddit.comShare This: favorites.live.com

Perform a new search, or try your search for "leverage" at: