HomeDefinitionsCompareDebt LeverageThe financial definition for Leverage:The use of debt financing, or property of rising or falling at a proportionally greater amount than comparable investments. For example, an option is said to have high leverage compared to the underlying stock because a given price change in the stock may result in a greater increase or decrease in the value of the option. Similar MatchesDebt leverageDebt leverageAmplification of the return earned on equity when an investment or firm is financed partially with borrowed money. Financial leverageFinancial leverageUse of debt to increase the expected return on equity. Financial leverage is measured by the ratio of debt to debt plus equity. Financial leverage clienteleFinancial leverage clienteleA group of investors who have a preference for investing in firms that adhere to a particular financial leverage policy. Further SuggestionsHighly leveraged transaction (HLT)Homemade leverage Leverage clientele Leveraged company Leveraged equity Leveraged investment company Leveraged lease Click to compare definitions of Leverage Click to view definitions beginning le |