Leverage
Encyclopedia : L : LE : LEV : Leverage
- For other senses of this word, see leverage (disambiguation).
The simplest device for creating leverage is the lever. A lever is a stick which rests on a fulcrum near one end. When you push the long end of the stick down a long ways, the short end moves a small distance up with great force. With this device a man can easily lift several times his own weight.
Other common devices that achieve leverage include the wrench, various pulley arrangements, a jack, and hydraulic brakes.
Metaphorical use
The word leverage is also used with metaphorical meanings of the word force. 1) the total number of people in a professional firm, department, office, or other practice unit divided by the number of partners. 2) Positional advantage; power to act effectively — ‘The seller has greater leverage in price negotiations if he has something the buyer wants.’ 3) the use of credit to enhance one's investing capacity, as in buying stocks on margin or buying a house using a mortgage.
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