Meaning of the word "financial leverage" in English
What does "financial leverage" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.
financial leverage
US /fəˈnænʃəl ˈlɛvərɪdʒ/
UK /fəˈnænʃəl ˈliːvərɪdʒ/
Noun
the use of borrowed capital for an investment, expecting the profits made to be greater than the interest payable
Example:
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The company increased its financial leverage to fund expansion.
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High financial leverage can amplify both gains and losses.