Levered: meaning, definitions and examples

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levered

 

[ หˆlษ›vษ™rd ]

Verb / Adjective
Context #1 | Verb

financial context

Levered refers to the use of borrowed funds to increase the potential return on investment. In finance, leveraging allows investors to control a larger asset with a smaller amount of their own capital. This strategy can amplify both gains and losses, making it a high-risk approach. Levered positions require careful management to avoid significant financial repercussions.

Synonyms

borrowed, exploited, financed, utilized.

Examples of usage

  • The company levered its assets to finance the new project.
  • By using margin accounts, we levered our investment to maximize returns.
  • He decided to take a levered position in the real estate market.
  • Levered buyouts are common in private equity transactions.
Context #2 | Adjective

gearing context

Levered can also describe a company or individual that has debt in relation to its equity. In this context, a levered company is one that has taken on debt in order to grow its operations or acquire assets. The leverage ratio measures this debt level against equity and can indicate financial risk as well. A highly levered firm may face greater instability during economic downturns.

Synonyms

geared, indebted, leveraged.

Examples of usage

  • The levered company was able to expand rapidly but faced risks due to high debt levels.
  • Investors are cautious about levered firms during recession periods.
  • A levered balance sheet can affect a company's stock valuation.

Translations

Translations of the word "levered" in other languages:

๐Ÿ‡ต๐Ÿ‡น alavancado

๐Ÿ‡ฎ๐Ÿ‡ณ เคฒเคฟเคตเคฐเคก

๐Ÿ‡ฉ๐Ÿ‡ช gehebelt

๐Ÿ‡ฎ๐Ÿ‡ฉ terlever

๐Ÿ‡บ๐Ÿ‡ฆ ะทะฐะดั–ัะฝะธะน

๐Ÿ‡ต๐Ÿ‡ฑ dลบwigniony

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 ู…ูุนูŽุฒู‘ูŽุฒ

๐Ÿ‡จ๐Ÿ‡ฟ pรกkovรฝ

๐Ÿ‡ธ๐Ÿ‡ฐ pรกkovรฝ

๐Ÿ‡จ๐Ÿ‡ณ ๆ ๆ†็š„

๐Ÿ‡ธ๐Ÿ‡ฎ povezan

๐Ÿ‡ฎ๐Ÿ‡ธ lyftur

๐Ÿ‡ฐ๐Ÿ‡ฟ ะบาฏัˆะตะนั‚ั–ะปะณะตะฝ

๐Ÿ‡ฌ๐Ÿ‡ช แƒฌแƒแƒฎแƒแƒšแƒ˜แƒกแƒ”แƒ‘แƒฃแƒšแƒ˜

๐Ÿ‡ฆ๐Ÿ‡ฟ qaldฤฑrฤฑlmฤฑลŸ

๐Ÿ‡ฒ๐Ÿ‡ฝ apalancado

Etymology

The term 'levered' originates from the word 'lever,' which has its roots in the Latin word 'levare,' meaning 'to raise.' The concept of leveraging, particularly in financial contexts, developed in the late 20th century as financial markets evolved. In the context of finance, leveraging became a popular strategy during the 1980s and 1990s, with the rise of asset management and investment banking practices. The idea of using borrowed capital to increase the potential return of an investment gained traction, allowing both individuals and corporations to engage in more ambitious ventures than what their own capital would allow. As financial instruments grew more complex, the term 'leveraged' became commonly associated with higher risks and potential rewards. This practice has since been integral to various financial strategies, including real estate investments and leveraged buyouts.

Word Frequency Rank

This word's position of #32,372 indicates it's among the more rare English words. While understanding it broadens your vocabulary, focus on more common words first.