GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Leverage


Synonyms:bargaining power, clout, influence, money
Filed Under: financial-banking, investments
Tags: banking, investment
 

Definition of leverage

leverage
1. The use of credit or borrowed funds in conjunction with a sum of money to increase the rate of return from an investment, such as buying securities on margin.

Related Terms and Acronyms:

  • capital   Money that is used to make money; for example, to buy rental property or a business.
  • collateral   Any property pledged as security for repayment of a debt.
  • down payment   The portion of the purchase price a buyer pays, in cash, at the time the loan originates.
  • leveraged property   A property financed with mortgage debt.
  • liabilities   A borrower's debts and legal obligations.
  • long-term liabilities   Money owed over a period longer than 12 months, such as mortgages, bank loans, and other obligations.
  • short-term liabilities   Money that you have to pay in less than 12 months, including wages, short-term loans, taxes, credit card balances and long-term loans.

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