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Definition of Leverage. action of a lever; mechanical power supplied by a lever; influence, ability to affect or alter people or circumstances; use of borrowed money to increase the return on an investment. use one's influence to affect people or circumstances; increase the return on an investment by using borrowed money.
homemade leverage. Definition. The idea that if people leverage themselves in borrowing and lending in the same fashion as a corporation that they can mimic the impact of corporate leverage. Investors use this method to move from overpriced shares in highly levered firms to those in unlevered firms by borrowing under the same conditions.