leverage

/'li:və/

Thân thiện

An investor uses leverage to increase potential returns on a stock purchase.

Definition

1. Noun:

   • The use of borrowed capital to increase the potential return of an investment: This financial meaning involves using debt to amplify possible profits, while also increasing the risk of larger losses.
   • Strategic advantage or power to influence people or situations: The ability to act effectively to achieve a desired outcome.
   • The mechanical advantage gained by using a lever: The force-amplifying effect achieved by using a lever.

2. Verb:

   • To use something to maximum advantage: To exploit a resource, advantage, or position to achieve a greater effect.
   • To supplement (financial resources) with borrowed capital: To use debt to finance an investment or project.

Usage Examples

• Noun (Financial):

  • The fund uses high leverage to boost its returns.
  • Leverage can magnify both gains and losses.

• Noun (Strategic Power):

  • The small country used its diplomatic leverage to negotiate a treaty.
  • She has significant leverage in the industry due to her connections.

• Noun (Mechanical):

  • A crowbar provides leverage to pry open the crate.

• Verb:

  • The company aims to leverage its brand reputation to enter new markets.
  • They leveraged their small initial investment to build a large business.

Advanced Usage

• "To have leverage over someone": to have power or influence that can be used to persuade or pressure them.

  • The prosecutor had leverage over the witness because of his past crimes.

• "Financial leverage": the degree to which an investor or business is utilizing borrowed money.

  • A high degree of financial leverage makes a company riskier.

• "Operating leverage": a measure of how revenue growth translates into growth in operating income, due to fixed costs.

  • The software company has high operating leverage because its main costs are fixed.

Variants and Related Words

• Leveraged (adj): Describing something financed by borrowed money or achieved through strategic advantage.

  • The deal was a leveraged buyout.
  • This is a highly leveraged position.

• Leverageable (adj): Capable of being used to gain an advantage.

  • Their patent portfolio is a highly leverageable asset.

Synonyms

• Influence (n): The capacity to have an effect on the character, development, or behavior of someone or something.
• Clout (n): Informal term for influence or power, especially in politics or business.
• Gearing (n): A British term synonymous with financial leverage.

Related Phrasal Verbs/Constructions

(Note: "Leverage" itself is not commonly used in phrasal verb constructions. Its verbal use is typically transitive.) - To leverage off (of) (less common): To use something as a foundation or starting point for advantage. - The new campaign will leverage off the success of the previous product launch.

Related Idioms

• "Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.": A quote attributed to Archimedes, illustrating the principle of mechanical leverage and, metaphorically, the power of a strategic advantage.
  • The startup's innovative idea was their lever; venture capital provided the fulcrum.

Học thuật

Noun

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

Verb

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

Từ đồng nghĩa

• leveraging
• purchase