Leveraged: meaning, definitions and examples

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leveraged

 

[ หˆlษ›vษ™rษชdส’d ]

Adjective
Context #1 | Adjective

financial context

Leveraged refers to the use of various financial instruments or borrowed capitalโ€”in other words, debtโ€”to increase the potential return of an investment. This term is often used in the context of finance and investing, where it indicates that the investment has been funded in part by borrowing. Higher leverage can amplify both potential gains and potential losses. In business, leveraged operations can mean using leverage to optimize asset utilization, resulting in increased profit margins. However, excessive leverage can lead to higher risk, and a company should balance its leverage to avoid financial distress.

Synonyms

debt-using, financed, geared.

Examples of usage

  • The company used leveraged buyouts to acquire its competitor.
  • Investors often seek leveraged investments to maximize their returns.
  • A leveraged position can result in substantial losses if the market moves against you.

Translations

Translations of the word "leveraged" in other languages:

๐Ÿ‡ต๐Ÿ‡น alavancado

๐Ÿ‡ฎ๐Ÿ‡ณ เคฒเคพเคญเค•เคพเคฐเฅ€

๐Ÿ‡ฉ๐Ÿ‡ช gehebelt

๐Ÿ‡ฎ๐Ÿ‡ฉ memanfaatkan

๐Ÿ‡บ๐Ÿ‡ฆ ะท leveraged

๐Ÿ‡ต๐Ÿ‡ฑ dลบwigniฤ™ty

๐Ÿ‡ฏ๐Ÿ‡ต ใƒฌใƒใƒฌใƒƒใ‚ธใ‚’ใ‹ใ‘ใŸ

๐Ÿ‡ซ๐Ÿ‡ท levรฉ

๐Ÿ‡ช๐Ÿ‡ธ apalancado

๐Ÿ‡น๐Ÿ‡ท kaldฤฑraรงlฤฑ

๐Ÿ‡ฐ๐Ÿ‡ท ๋ ˆ๋ฒ„๋ฆฌ์ง€๋œ

๐Ÿ‡ธ๐Ÿ‡ฆ ู…ุณุชุบูŽู„

๐Ÿ‡จ๐Ÿ‡ฟ pรกฤenรฝ

๐Ÿ‡ธ๐Ÿ‡ฐ pรกฤenรฝ

๐Ÿ‡จ๐Ÿ‡ณ ๆ ๆ†็š„

๐Ÿ‡ธ๐Ÿ‡ฎ vzvodni

๐Ÿ‡ฎ๐Ÿ‡ธ lyftar

๐Ÿ‡ฐ๐Ÿ‡ฟ ะปะตะฒะตั€ะปะตะฝะณะตะฝ

๐Ÿ‡ฌ๐Ÿ‡ช แƒšแƒ”แƒ•แƒ”แƒ แƒŸแƒ˜แƒ แƒ”แƒ‘แƒฃแƒšแƒ˜

๐Ÿ‡ฆ๐Ÿ‡ฟ leverage edilmiลŸ

๐Ÿ‡ฒ๐Ÿ‡ฝ apalancado

Etymology

The term 'leverage' originated from the late Latin word 'levare,' meaning 'to raise or lift.' The modern usage of 'leverage' began in the context of mechanics, referring to the mechanical advantage gained through the use of a lever in the early 19th century. Over time, especially in the early to mid-20th century, the term found its way into financial jargon, where it transitioned from its physical meaning to describe the financial strategy of using borrowed capital to increase the potential return on investment. This financial connotation became more prominent during the rapid growth of investment strategies and corporate finance, particularly in the 1980s and 1990s with the rise of leveraged buyouts. Now, 'leveraged' commonly pertains to any financial strategy utilizing debt, thus influencing modern business practices and investment strategies across various sectors.

Word Frequency Rank

Positioned at #20,775, this word is part of extensive vocabulary. It's relatively rare in general usage but may be important in specific fields or formal writing.