Leverage vs Overleveraged - What's the difference?
leverage | overleveraged |
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).
As a noun leverage
is a force compounded by means of a lever rotating around a pivot; see torque.As a verb leverage
is (transitive|chiefly|us|slang|business) to use; to exploit; to take full advantage (of something).As an adjective overleveraged is
(economics) subject to excessive leverage.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.}}