Leverage

Definition

  • The use of credit or borrowed funds in conjunction with a sum of money to increase the rate of return from an investment, such as buying securities on margin.

Synonyms
influence, bargaining power, clout, money

Alternate Spellings
leveraging

Related Terms and Acronyms

  • Capital Definition,
    • Money that is used to make money; for example, to buy rental property or a business.
  • Collateral Definition,
    • Any property pledged as security for repayment of a debt.
  • Down Payment Definition,
    • The portion of the purchase price a buyer pays, in cash, at the time the loan originates.
  • Leveraged Property Definition,
    • A property financed with mortgage debt.
  • Liabilities Definition,
    • A borrower's debts and legal obligations.
  • Long-term Liabilities Definition,
    • Money owed over a period longer than 12 months, such as mortgages, bank loans, and other obligations.
  • Short-term Liabilities Definition,
    • Money that you have to pay in less than 12 months, including wages, short-term loans, taxes, credit card balances and long-term loans.
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