leverage

American  

[lev-er-ij, lee-ver-] / ˈlɛv ər ɪdʒ, ˈli vər- /

noun

1. the action of a lever, a rigid bar that pivots about one point and that is used to move an object at a second point by a force applied at a third.

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.

   Synonyms:

   pull, clout, weight, strength, advantage

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.

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verb (used with object)

leveraged, leveraging

1. to use (a quality or advantage) to obtain a desired effect or result.

   She was able to leverage her travel experience and her gift for languages to get a job as a translator.

2. to provide with leverage.

   The board of directors plans to leverage two failing branches of the company with an influx of cash.

3. to invest or arrange (invested funds) using leverage.

4. to exert power or influence on.

   It was Joe who leveraged her to change her habits.

leverage British  

/ ˈlɛv-, -vrɪdʒ, ˈliːvərɪdʒ /

noun

1. the action of a lever

2. the mechanical advantage gained by employing a lever

3. power to accomplish something; strategic advantage

4. the enhanced power available to a large company

   the supermarket chains have greater leverage than single-outlet enterprises

5. US word for gearing

6. the use made by a company of its limited assets to guarantee the substantial loans required to finance its business

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leverage Cultural  

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

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Other Word Forms

• nonleveraged adjective
• unleveraged adjective

Etymology

Origin of leverage

First recorded in 1715–25; lever + -age

Example Sentences

Six months ago, the company said its bitcoin strategy was more than just about capital allocation, calling it a “comprehensive long-term digital asset strategy” that included buying bitcoin and leveraging its bitcoin holdings.

From MarketWatch

The company has leveraged partnerships and been more disciplined with AI spending than many of its peers, but has also made a series of missteps.

From MarketWatch

The optimal New Year’s resolution works with human nature rather than trying to defy it, respecting the limits of motivation and leveraging the power of behavioral economics.

From The Wall Street Journal

The speculative leverage has been wrung out of this market for months.

From MarketWatch

These unspoken pressures are all the more effective because leverage in the job market has tilted in favor of employers.

From The Wall Street Journal

Related Words

• advantage
• bargaining chip
• clout
• weight