Words / L / Law

leverage

/ˈliːvərɪdʒ/

B1CEFR level
45/100Rarity: uncommon
TechnicalRegister

Law verb

To fund an acquisition or operation largely with borrowed money.

The sponsor leveraged the buyout heavily, loading the target with acquisition debt.

Similar: gear

Topic: Corporate law in Legal English

Business noun

The use of borrowed capital to amplify potential returns.

High leverage magnified both the gains and the losses.

Similar: gearing, borrowing

Origin: from 'lever'.

Topic: Finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More law words: Corporate law