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leverage

Leverage vs Overleverage - What's the difference?

leverage | overleverage |


In finance terms the difference between leverage and overleverage

is that leverage is 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 while overleverage is to leverage excessively.

As nouns the difference between leverage and overleverage

is that leverage is a force compounded by means of a lever rotating around a pivot; see torque while overleverage is excessive leverage.

As verbs the difference between leverage and overleverage

is that leverage is to use; to exploit; to take full advantage (of something) while overleverage is to leverage excessively.

Leverage vs Overleveraged - What's the difference?

leverage | overleveraged |


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.

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