Leveraged
'liːvərɪdʒd
Definitions
To use something to its maximum advantage; to get the most out of something. In finance, it means to use debt to increase investment potential.
'liːvərɪdʒd
To use something to its maximum advantage; to use borrowed capital to increase the potential return of an investment.
The company leveraged its existing customer base to launch a new product.
💡 Simply: It's like using something, like your skills or resources, to get a better outcome. For example, you might 'leverage' your knowledge of social media to help a friend's business get more customers. Or, if a company 'leverages' its assets, it's using what it already has to get more money.
👶 For kids: It means using something to help you get something else. Like, if you use a toy car to help push another toy, you are leveraging it!
More Examples
They leveraged their strong brand reputation to negotiate better deals with suppliers.
By leveraging the latest technology, the company improved its efficiency.
How It's Used
"The company leveraged its existing assets to secure a loan."
"She leveraged her network to find a new job."
"They leveraged their research to create a better product."
From the noun "leverage", which comes from the French word "levier" (lever), ultimately derived from the Latin "levare" (to raise). It has roots in mechanics and physics, referring to the mechanical advantage gained by using a lever. The financial meaning developed later.
The financial meaning of 'leveraged' emerged in the 20th century, particularly with the rise of complex financial instruments and the concept of using debt for investment.
Memory tip
Imagine using a lever to lift a heavy object – you're leveraging its power to your advantage.