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Equity
Equity1) Ownership interest in a firm. 2) The residual dollar value of a futures trading account, assuming its liquidation is at the going trade price. 3) In real estate, dollar difference between what a property could be sold for and debts claimed against it. 4) In a brokerage account, equity equals the value of the account's securities minus any debit balance in a margin account. 5) Shorthand for stock market investments. RELATED TERMS-------------------------------------- Interest The amount of money a lender loans a borrower to pay for using the borrower's principal. Firm 1) Refers to an order to buy or sell that can be executed without confirmation for some fixed period. 2) A synonym for company. Value The worth or desirability of something expressed as an amount of money. Futures Contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange. Trading Buying and selling securities. Account 1) In the context of bookkeeping, refers to the ledger pages upon which various assets, liabilities, income, and expenses are represented. 2) In the context of investment banking, refers to the status of securities sold and owned or the relationship between parties to an underwriting syndicate. 3) In the context of securities, the relationship between a client and a broker/dealer firm allowing the firm's employee to be the client's buying and selling agent. Liquidation 1) When a business or firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors. 2) Any transaction that offsets or closes out a long or short position. Trade To buy and sell; buying and selling. Price The cost of a good or service to the consumer. Real Used in the context of general equities. 1)Nnatural. 2) Not dividend roll-or program trading-related. 3) Not tax-related. Estate European Economic Community. Property A legally owned possession or real estate. Equity 1) Ownership interest in a firm. 2) The residual dollar value of a futures trading account, assuming its liquidation is at the going trade price. 3) In real estate, dollar difference between what a property could be sold for and debts claimed against it. 4) In a brokerage account, equity equals the value of the account's securities minus any debit balance in a margin account. 5) Shorthand for stock market investments. Securities Saleable papers, traded on stock exchanges, that yield an income (dividend, interest, etc.). Minus The symbol (-) that precedes the change figure in a stock table to indicate a closing sale lower than that of the previous day. Debit An expense, or money paid out from an account. A debit transaction is one which the net cost is greater than the net sale proceeds. Margin 1) Borrowed money that is used to purchase securities, practice referred to as 'buying on margin'. 2) The amount of equity contributed by a customer as a percentage of the current market value of the securities held in a margin account. 3) In a general business context, the difference between a product's (or service's) selling price and the cost of production. 4) The portion of the interest rate on an adjustable-rate mortgage that is over and above the adjustment-index rate. Stock US equivalent of the British word "share", a block of shares with a nominal value of 100, or various kinds of fixed-interest securities; in Britain, goods stored ready for sale, raw materials, work in progress and finished but unsold products. Market 1) The total demand for a good. 2) The set of all actual and potential buyers of a good or service. 3) The place where people buy and sell. 4) The process by which buyers and sellers of goods, services and factors of production interact to determine prices and quantifies. Investments As a discipline, the study of financial securities, such as stocks and bonds, from the investor's viewpoint. SIMILAR TERMS-------------------------------------- Equifax Equifax is a top United States corporation in the field of business services and supplies, and its estimated market value is 3,950 million US dollars. EQUIGold NL EQUIGold NL is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is EQI. Equilibrium A state of balance, such as when supply meets demand. Equilibrium exchange rate Exchange rate at which demand for a currency is equal to the supply of the currency in the economy. Equilibrium market price of risk The slope of the capital market line (CML). Equilibrium price The price at which the supply of goods matches demand. Equilibrium rate of interest The interest rate that clears the market. Also called the trade-clearing interest rate. EQUINOX Minerals Limited EQUINOX Minerals Limited is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is EQN. Equipment leasing partnership A limited partnership that receives income and tax benefits such as depreciation costs by purchasing equipment and leasing it to other parties. Equipment trust certificates Certificates issued by a trust that is formed to purchase an asset and lease it to a lessee. Equitable Group Equitable Group is one of Canada's largest companies. Equitable owner The beneficiary of a property held in a trust. Equitable Resources Equitable Resources is a top United States corporation in the field of utilities, and its estimated market value is 3,650 million US dollars. Equity cap An agreement in which one party, for an up-front premium, agrees to pay the other at specific time periods if a designated stock market benchmark tops a predetermined level. Equity carve out Usually occurs when a company decides to IPO one of their subsidiaries or divisions. Also known as carve out. Equity claim Also called a residual claim; a claim to a share of earnings after debt obligations have been satisfied. Equity collar The simultaneous purchase of an equity floor and sale of an equity cap. Equity contribution agreement An agreement to contribute equity to a project under certain specified conditions. Equity financing Involves issuing stock or shares (equities) that will normally pay dividend but need never be repaid. Equity floor An agreement in which one party agrees to pay the other at specific time periods if a specific stock market benchmark falls below a predetermined level. Equity funding An investment consisting of a life insurance policy and a mutual fund. Equity kicker Stock warrants issued attached to a new debt, preferred or common stock issue to improve the salability of the issue. Equity linked Eurobonds A Eurobond including a convertibility option or warrant. Equity multiplier Total assets divided by total common stockholders' equity; the total assets per dollar of stockholders' equity. Equity Office Prop Equity Office Prop is a top United States corporation in the field of diversified financials, and its estimated market value is 12,170 million US dollars. Equity options Securities that give the holder the right (but not the obligation) to buy or sell a specified number of shares of stock, at a specified price for a certain (limited) time period. Equity REIT A Real Estate Investment Trust that assumes ownership status in the property it invests in enabling investors of the REIT to earn dividends on rental income from the property and appreciation in property resale. Equity Residential Equity Residential is a top United States corporation in the field of diversified financials, and its estimated market value is 9,350 million US dollars. Equity swap A swap in which the cash flows exchanged are based on the total return on some stock market index and an interest rate (either a fixed rate or floating rate). Equity Trustees Limited Equity Trustees Limited is a large Australian company in the field of diversified financials. Their Australian Stock Exchange (ASX) code is EQT. Equityholders Stockholders; those holding shares of the firm' s equity. Equivalent annual annuity The amount per year for some number of years that has a present value equal to a given amount. Equivalent annual benefit The annual annuity with the same value as the net present value of an investment project. Equivalent annual cash flow Annuity with the same net present value as the company's proposed investment. Equivalent annual cost The cost per year of owning an asset over its entire life. Equivalent bond yield Effective annual yield on a short-term, noninterest-bearing security calculated for comparison to yields quoted on coupon securities. Equivalent loan Given the after-tax stream associated with a lease, the maximum amount of conventional debt that the same period-by-period after-tax debt service stream is capable of supporting. Equivalent taxable yield The yield that must be offered on a taxable bond issue to give the same after-tax yield as a tax-exempt issue. Equivalia Inversiones, SICAV, S.A. Equivalia Inversiones, SICAV, S.A. is a Spanish company listed at Madrid Stock Exchange. Its business activity is capital investment. PREVIOUS AND NEXT TERMS-------------------------------------- Equilibrium price The price at which the supply of goods matches demand. Equilibrium rate of interest The interest rate that clears the market. Also called the trade-clearing interest rate. Equipment leasing partnership A limited partnership that receives income and tax benefits such as depreciation costs by purchasing equipment and leasing it to other parties. Equipment trust certificates Certificates issued by a trust that is formed to purchase an asset and lease it to a lessee. Equitable owner The beneficiary of a property held in a trust. Equity Equity cap An agreement in which one party, for an up-front premium, agrees to pay the other at specific time periods if a designated stock market benchmark tops a predetermined level. Equity carve out Usually occurs when a company decides to IPO one of their subsidiaries or divisions. Also known as carve out. Equity claim Also called a residual claim; a claim to a share of earnings after debt obligations have been satisfied. Equity collar The simultaneous purchase of an equity floor and sale of an equity cap. Equity contribution agreement An agreement to contribute equity to a project under certain specified conditions. We thank you for using the Financial Dictionary to search for Equity. If you have a better definition for Equity than the one presented here, please let us know by making use of the suggest a term option. This definition of Equity may be disputed by other professionals. Our attempt is to provide easy definitions on Equity and any other medical topic for the public at large.
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