leverage

/ˈliːvərɪdʒ/

/ˈlevərɪdʒ/ noun [U]

Definition

› the power to influence people and get the results you want: This gives advertisers more leverage when it comes time to negotiate rates. Campaigners are trying to get as much political leverage on the situation as possible. States do not have the economic leverage to influence a foreign country. Labor experts say a service economy can give leverage to unionized workers.

› FINANCE the relationship between the amount of money that a company owes and its share capital or value: The company plans to reduce the leverage to between 40% and 60% by the year end. The bank was asked to improve its capitalization and reduce its leverage. The figure shows that they had high growth rates of bank lending and high leverage. Even if banks were able to rush back into heavy leverage soon, investors wouldn't stand for it. → Compare gearing

› FINANCE the act of using borrowed money to buy an investment or a company: With leverage, the investor's $100,000 buys $500,000 or more of stock if he wants.