New Software Helps Leverage the Paradigm

[Ed Keer]

--- "James A. Landau" <JJJRLandau at AOL.COM> wrote:
> leverage---in the stock market, you are permitted to
> borrow 50% of the price
> of the stock you buy.  Hence if you put up $500 of
> your own money you can
> borrow enough ("buying on margin" it's called) to
> buy $1,000 of stock.  Hence your
> $500 has "leveraged" itself into $1,000 of
> purchasing power.  Think of
> Archimedes's lever with a two-to-one advantage.
> "Leveraged" is used in finance to
> mean a deal in which you put up only part of the
> money and borrow or otherwise
> pledge the rest to close the deal.
>     I suppose you could say, when you get a mortgage
> to buy a house, that you
> have perpetrated a "leveraged deal" but generally
> only businessmen use the
> term.  The related term "on margin" is used only in
> the stock market and
> commodities market.

My experience with the business use of "leverage" is
that it means "exploit" as in "Let's leverage the key
learnings from this project to develop best
practices."

Although I do know the use James' sense as well.

Ed

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