Levered: meaning, definitions and examples
๐
levered
[ หlษvษrd ]
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.
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
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:
๐ต๐น alavancado
๐ฎ๐ณ เคฒเคฟเคตเคฐเคก
๐ฉ๐ช gehebelt
๐ฎ๐ฉ terlever
๐บ๐ฆ ะทะฐะดััะฝะธะน
๐ต๐ฑ dลบwigniony
๐ฏ๐ต ใฌใใฌใใธใใใใ
๐ซ๐ท levรฉ
๐ช๐ธ apalancado
๐น๐ท kaldฤฑraรงlฤฑ
๐ฐ๐ท ๋ ๋ฒ๋ฆฌ์ง๋
๐ธ๐ฆ ู ูุนูุฒููุฒ
๐จ๐ฟ pรกkovรฝ
๐ธ๐ฐ pรกkovรฝ
๐จ๐ณ ๆ ๆ็
๐ธ๐ฎ povezan
๐ฎ๐ธ lyftur
๐ฐ๐ฟ ะบาฏัะตะนััะปะณะตะฝ
๐ฌ๐ช แฌแแฎแแแแกแแแฃแแ
๐ฆ๐ฟ qaldฤฑrฤฑlmฤฑล
๐ฒ๐ฝ 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.
- ...
- 32369 vixen
- 32370 thatching
- 32371 enchantress
- 32372 levered
- 32373 reasserting
- 32374 holistically
- 32375 careened
- ...