Definition 1
The degree to which an investor or business is utilizing borrowed money. Companies that are highly leveraged may be at risk of bankruptcy if they are unable to make payments on their debt; they may also be unable to find new lenders in the future. Leverage is not always bad, however; it can increase the shareholders' return on their investment and often there are tax advantages associated with borrowing. also called financial leverage.
Definition 2
What the debt/equity ratio measures.
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'leverage' appears in the definitions of these other terms on BusinessDictionary.com: Modiglani-Miller hypothesis, derivative security, agile manufacturing, basic earnings power, debt-equity ratio, and 
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