Leverage vs Equity - What's the difference?
leverage | equity |
A force compounded by means of a lever rotating around a pivot; see torque.
By extension, any influence which is compounded or used to gain an advantage.
(finance) The use of borrowed funds with a contractually determined return to increase the ability of a business to invest and earn an expected higher return, but usually at high risk.
*
(business) The ability to earn very high returns when operating at high capacity utilization of a facility.
* {{quote-news
, year=2011
, date=April 15
, author=Saj Chowdhury
, title=Norwich 2 - 1 Nott'm Forest
, work=BBC Sport
(transitive, chiefly, US, slang, business) To use; to exploit; to take full advantage (of something).
value of some business.
* {{quote-magazine, date=2013-06-22, volume=407, issue=8841, page=70, magazine=(The Economist)
, title= (legal) A legal that deals with remedies other than (l) relief, such as injunctions, divorces and similar actions.
* Macaulay
(legal) of property minus liens or other (l).
(legal) An equitable claim; an equity of redemption.
* Kent
(accounting) Ownership interest in a company as determined by subtracting liabilities from (l).
Justice, impartiality or fairness.
* Tillotson
As nouns the difference between leverage and equity
is that leverage is a force compounded by means of a lever rotating around a pivot; see torque while equity is ownership, especially in terms of net monetary value of some business.As a verb leverage
is to use; to exploit; to take full advantage (of something).leverage
English
Noun
(en-noun)- A crowbar uses leverage to pry nails out of wood.
- Try using competitors’ prices for leverage in the negotiation.
- Leverage is great until something goes wrong with your investments and you still have to pay your debts.
- Their variable-cost-reducing investments have dramatically increased their leverage .
citation, page= , passage=The former Forest man, who passed a late fitness test, appeared to use Guy Moussi for leverage before nodding in David Fox's free-kick at the far post - his 22nd goal of the season.}}
Synonyms
* (force compounded by a lever) mechanical advantage * (use of borrowed fund) financial leverage * (ability to earn high returns from high capacity utilization) operating leverageVerb
(leverag)Derived terms
* leveraged buyoutSynonyms
* (take full advantage of) exploit, useequity
English
(wikipedia equity)Alternative forms
* (archaic)Noun
Engineers of a different kind, passage=Private-equity nabobs bristle at being dubbed mere financiers. Piling debt onto companies’ balance-sheets is only a small part of what leveraged buy-outs are about, they insist. Improving the workings of the businesses they take over is just as core to their calling, if not more so. Much of their pleading is public-relations bluster.}}
- Equity had been gradually shaping itself into a refined science which no human faculties could master without long and intense application.
- an equity''' to a settlement, or wife's '''equity , etc.
- I consider the wife's equity to be too well settled to be shaken.
- Christianity secures both the private interests of men and the public peace, enforcing all justice and equity .