investing in something with borrowed money He will borrow more money, or, as they say on Wall Street, lay on more leverage.
the ability to influence something The United States has limited diplomatic and economic leverage in Burma.
- The dangers of leverage in a market where asset prices are falling are apparent.
- Large leverage transactions in today's environment are difficult.
- Many European institutions are just as heavily leveraged as American banks.
- leveraged buyout
- The boycott is an effective political leverage .
- The investment fund manager decided to reduce leverage across the portfolio.
- UK: gearing
- High leverage means a large proportion of borrowing against a company's assets.
- The term leverage is also sometimes used to refer to the relationship between the value of a company's equity (=its shares) and the value of its debt (=the money that it owes).
- Leverage can also signify the amount of money borrowed in excess of money or assets invested personally and the degree to which a business or investor utilizes borrowed money. In other contexts, leverage denotes positional advantage or the power to act effectively.
- Related terms include: leveraged buyout, LBO: when management or outside investors purchase outstanding stock from a public company, with finance consisting primarily of funds borrowed from investment banks or brokers; operating leverage; reverse leverage.