- leverage
-
le·ver·age 1 /'le-vrij, -və-rij/ n: the use of credit to enhance one's speculative capacityleverage 2 vt -aged, -ag·ing: to provide (as a corporation) or supplement (as money) with leverage
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.
- leverage
-
n.(1) The use of borrowed money to try to earn much more through investment, in the hopes that the profits will outweigh the interest owed on the debt.(2) The ratio of a busi-ness’s debt to equity.
The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008.
- leverage
-
1) The use of borrowed money to purchase real estate or business assets, usually involving borrowed money that equals a high percentage of the value of the purchased property. The dangers of high leverage are overappraisal of the property, a decline in the value of the property, and high carrying costs (interest, insurance, taxes, maintenance).2) To borrow most of the funds necessary as a loan against real estate to buy other real estate or business assets.Category: Business, LLCs & CorporationsCategory: Real Estate & Rental Property → HomeownersCategory: Real Estate & Rental Property → Buying a House
Nolo’s Plain-English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009.
- leverage
-
The ratio of bank debt to the amount of equity investment in the company. A highly leveraged transaction will involve a proportionately large amount of bank debt.Related links+ leverageUSAIn finance, the amount of debt that a company has borrowed. Leverage is generally considered to be the ratio of debt in relation to equity in a company's capital structure. A highly leveraged company is considered to have a significant amount of debt compared to its equity. In a loan agreement, a company's leverage ratio is typically the ratio of the company's debt to EBITDA.Leverage is beneficial to a company and its shareholders when the proceeds of the debt are invested by the company and the revenue from that investment exceeds the interest costs of the debt.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
- leverage
-
n.1 Generally, the use of borrowed money to engage in transactions with a high rate of return that will allow repayment of the loan.2 The ratio between a company's debt and equity.
Webster's New World Law Dictionary. Susan Ellis Wild. 2000.
- leverage
-
A method of financing an investment by which an investor pays only a small percentage of the purchase price in cash, with the balance supplemented by borrowed funds, in order to generate a greater rate of return than would be produced by paying primarily cash for the investment; the economic benefit gained by such financing.
Dictionary from West's Encyclopedia of American Law. 2005.
- leverage
-
A method of financing an investment by which an investor pays only a small percentage of the purchase price in cash, with the balance supplemented by borrowed funds, in order to generate a greater rate of return than would be produced by paying primarily cash for the investment; the economic benefit gained by such financing.
Short Dictionary of (mostly American) Legal Terms and Abbreviations.
- leverage
-
1) n. the use of borrowed money to purchase real estate or business assets, usually involving money equaling a high percentage of the value of the purchased property.2) v. to borrow most of the funds necessary as a loan against real estate to buy other real estate or business assets. The dangers of high leverage are over-appraisal of the property to satisfy a lender, a decline in the value of the property (which may have been purchased during a period of high inflation), high carrying costs (interest, insurance, taxes, maintenance) which exceed income, vacancies and/or inability to finance improvements to increase profits. Too often the result is the collapse of "paper" real estate empires which have been created by risky leveraging.
Law dictionary. EdwART. 2013.
