leverage
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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
- Power to influence people or events; strategic advantage.
- The action of a lever, or the mechanical advantage it gives.
- (finance) The use of loans or credit to increase the potential return on an investment; the ratio of debt to equity.
Verb
- To use borrowed money to finance an investment or company.
- To make the most of something for gain.
Word family
- unleveraged
- leveraged buyout
Related words
- lever
- levitate
- elevate
- relieve
References
- ^ Wiktionary, the free dictionary, https://en.wiktionary.org
- ^ a b c d e f g h i Harper, Douglas. Online Etymology Dictionary, https://www.etymonline.com
- ^ 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
- ^ Merriam-Webster Unabridged Dictionary (2024), online ed., Springfield, Mass.: Merriam-Webster
- ^ The American Heritage Dictionary of the English Language (1992), 3rd ed., Boston: Houghton Mifflin