Leverage
/ˈliːvərɪdʒ/
Definitions
3 meaningsThe power or ability to act or to influence people, events, decisions, etc.
/ˈliːvərɪdʒ/
The power to influence a person or situation.
The company had significant financial leverage due to its strong assets.
💡 Simply: Imagine you're trying to lift a heavy box. If you use a lever, you can move it with much less effort. Leverage is like that lever—it gives you extra power or influence.
👶 For kids: It's like having a secret power! If you have leverage, you can make something happen easier or faster.
More Examples
Negotiation tactics gave the union leverage in the contract talks.
The CEO used his position as leverage to secure investments.
How It's Used
"Companies use marketing to gain leverage over their competitors."
"Diplomacy can provide leverage in international negotiations."
To use (something) to maximum advantage; exploit.
/ˈliːvərɪdʒ/
To use something to maximize the potential of something else; to manipulate.
They leveraged their existing customer base to introduce a new service.
💡 Simply: Imagine having a cool tool that helps you do something bigger or better. That's what it means to leverage something. You use what you have to get a bigger result.
👶 For kids: To use something to make something else better or bigger, like using a toy to help you build a giant tower!
More Examples
The marketing team leveraged social media to promote the event.
He leveraged his connections to secure a job offer.
How It's Used
"The company leveraged its brand recognition to launch a new product."
"The firm leveraged its assets to acquire another company."
The use of borrowed money to increase the potential return of an investment.
/ˈliːvərɪdʒ/
Financial advantage gained by using borrowed money.
The company's high leverage made it vulnerable to market fluctuations.
💡 Simply: In the world of finance, it can also mean using borrowed money to increase profits or investment returns. This is how people are able to buy a house, even if they don't have all the money upfront.
👶 For kids: Like borrowing toys from a friend to build a super cool toy house!
More Examples
Financial leverage can increase returns, but it also increases risk.
How It's Used
"High financial leverage can magnify both gains and losses."
Synonyms
Advantage
Clout
Control
Influence
Exploit
Harness
Gearing
Idioms & expressions
Leverage a situation
To use a particular circumstance or event to gain an advantage.
"The company leveraged the crisis to increase its market share."
High leverage
Significant use of borrowed funds or other resources to amplify potential returns or impact.
"The company was operating with high leverage, making it more susceptible to financial risks."
From French *levée* (the act of raising) or *lever* (to raise), from Latin *levare* (to raise, lift), related to *levis* (light). The concept initially referred to the mechanical advantage gained by using a lever.
Historically, the term's usage was primarily related to mechanical advantage. Its application to financial and social contexts broadened in the 20th century.
Memory tip
Think of a lever – you apply a small force to get a much bigger effect. This meaning is about amplifying your influence.