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What does Leverage mean?

The use of borrowed capital to finance an investment, expecting profits to exceed the cost of borrowing.

Leverage in a sentence
Using leverage can amplify both gains and losses in an investment.

Leverage in German, French, Spanish and Italian

German
Hebelwirkung
also Leverage

Hebelwirkung durch Fremdkapital.

French
Effet de levier

Utilisation de l'endettement pour booster la rentabilité.

Spanish
Apalancamiento

Uso de deuda para financiar activos.

Italian
Leva finanziaria

Rapporto tra indebitamento e capitale proprio.

Common phrases with Leverage

  • high leverage
  • use leverage
  • financial leverage
  • increase leverage

Synonyms and opposites for Leverage

  • Synonym Gearing
  • Synonym Debt financing
  • Opposite Deleveraging

More Economics terms

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