LEVERAGE

leverage, leveraging

(noun) investing with borrowed money as a way to amplify potential gains (at the risk of greater losses)

leverage

(noun) strategic advantage; power to act effectively; “relatively small groups can sometimes exert immense political leverage”

leverage, purchase

(noun) the mechanical advantage gained by being in a position to use a lever

leverage

(verb) provide with leverage; “We need to leverage this company”

leverage

(verb) supplement with leverage; “leverage the money that is already available”

Source: WordNet® 3.1


Etymology

Noun

leverage (usually uncountable, plural leverages)

A force compounded by means of a lever rotating around a pivot; see torque.

By extension, any influence which is compounded or used to gain an advantage.

(finance) The use of borrowed funds with a contractually determined return to increase the ability of a business to invest and earn an expected higher return, but usually at high risk.

(business) The ability to earn very high returns when operating at high capacity utilization of a facility.

Synonyms

• (force compounded by a lever): mechanical advantage

• (use of borrowed fund): financial leverage

• (ability to earn high returns from high capacity utilization): operating leverage

Verb

leverage (third-person singular simple present leverages, present participle leveraging, simple past and past participle leveraged)

(transitive, chiefly, US, slang, business) To use; to exploit; to manipulate in order to take full advantage (of something).

Synonyms

• (take full advantage of): exploit, use

Source: Wiktionary


Lev"er*age, n.

Definition: 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.

Source: Webster’s Unabridged Dictionary 1913 Edition



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Word of the Day

27 June 2025

SQUARE

(adjective) having four equal sides and four right angles or forming a right angle; “a square peg in a round hole”; “a square corner”


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Coffee Trivia

Some 16th-century Italian clergymen tried to ban coffee because they believed it to be “satanic.” However, Pope Clement VII loved coffee so much that he lifted the ban and had coffee baptized in 1600.

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