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leverage

In the physical sense, leverage is an assisted advantage. As a verb, to leverage means to gain an advantage through the use of a tool. For example, you can more easily lift a heavy object with a lever than you can lift it unaided. Leverage is commonly used in a metaphorical sense. For example, as a frequently used business or marketing term, leverage is any strategic or tactical advantage, and as a verb, means to exploit such an advantage, just as the use of a physical lever gives one an advantage in the physical sense.

Leverage is a very popular business term on the Web. B2B Web sites offer to leverage Web sites, code, interactivity, storage area networks, database technology, and many other things. In the world of finance, leverage is the use of borrowed money to make an investment and the return on an investment.

This was last updated in September 2005

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