leverage

Pronunciation

• IPA: /ˈlɛv.(ə.)ɹɪd͡ʒ/, /ˈliːv.(ə.)ɹɪd͡ʒ/^[1]

Etymology

It is from English lever + -age.^[2]

Earliest recorded meaning

The action of a lever: 1724 in Etymonline and the OED.^[2][3]

Semantic evolution

The power of a lever, the mechanical advantage it gives, is from 1827 in Etymonline, 1830 in the OED and Merriam-Webster.^[2][3][4] The figurative sense, an advantage for achieving a purpose, is from 1858.^[2][3] The financial sense, the use of loans or credit to increase the return on an investment, is attested by 1931–33, American English;^[3][2] the verb in this sense is from 1937 in the OED and 1956 in Etymonline,^[3][2] and the general verb, to use something to maximum advantage, is newer.^[5]

Timeline

• 1724 – the action of a lever.^[2][3]
• 1827 – the power of a lever.^[2]
• 1858 – advantage, influence.^[2][3]
• 1931 – financial leverage.^[3]
• 1937 – to leverage (verb).^[3]

Modern meaning

Noun

1. Power to influence people or events; strategic advantage.
2. The action of a lever, or the mechanical advantage it gives.
3. (finance) The use of loans or credit to increase the potential return on an investment; the ratio of debt to equity.

Verb

1. To use borrowed money to finance an investment or company.
2. To make the most of something for gain.

Word family

• unleveraged
• leveraged buyout

Related words

• lever
• levitate
• elevate
• relieve

References

1. ^ Wiktionary, the free dictionary, https://en.wiktionary.org
2. ^ a b c d e f g h i Harper, Douglas. Online Etymology Dictionary, https://www.etymonline.com
3. ^ a b c d e f g h i Simpson, J. A.; Weiner, E. S. C., eds. (1989), The Oxford English Dictionary, 2nd ed., Oxford: Clarendon Press
4. ^ Merriam-Webster Unabridged Dictionary (2024), online ed., Springfield, Mass.: Merriam-Webster
5. ^ The American Heritage Dictionary of the English Language (1992), 3rd ed., Boston: Houghton Mifflin