Equity

 

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Equity

Share in the ownership of a corporation; more commonly called a stock, as in the stock market.

Equity

The value of a person's interest in real property after all liens and charges have been deducted.

Equity

The amount which shareholders own in a publicly quoted company. Equity is the risk-bearing part of the company's capital and contrasts with debt capital which is usually secured in some way and which has priority over shareholders if the company becomes insolvent and its assets are distributed.For most companies there are two types of equity: ordinary shares, which have voting rights, and preference shares which do not. Owners of preference shares rank ahead of ordinary shareholders in a liquidation.



Similar Matches

Equity release scheme

Equity release scheme

A scheme designed to allow homeowners to 'release' cash from the value of their property. They come in two varieties:Home income plansHome reversion schemesWith either type, you can choose to receive the equity as income, as a lump sum or as a mixture of both.Schemes offered by financial institutions vary considerably and, as always, it is important to look at the small print. Some schemes are only available to people over 70, while others are suitable for younger homeowners with longer life expectancies.Safe Home Income Plans (SHIP) is a self-regulatory body that was formed in 1991 to promote fairer schemes after thousands of elderly homeowners were left with large losses in the late Eighties. SHIP can be contacted on 01242 539 494.


Negative equity

Negative equity

A situation where the purchaser of a property has taken out a mortgage and some time after the purchase, the value of the property falls below the mortgage amount. For example:Purchase price of property: £80,000Deposit: £10,000Mortgage: £70,000If the value of the property falls below £70,000, the mortgage holder has negative equity in the property.


Preferred equity redemption stock (PERC)

Preferred equity redemption stock (PERC)

Preferred stock that converts automatically into equity at a stated date. A limit is placed on the value of the shares the investor receives.


Non Equity Option

Non Equity Option

An option whose underlying entity is not common stock; typically refers to options on physical commodities and index options.


Return on equity

Return on equity

The adjusted profit of a company divided by its equity. For instance, if the adjusted profit of a company is £1m and Equity is £10m, the Return on Equity is 10%.Adjusted profit is the profit of the company adjusted to exclude the impact of non-recurring exceptional gains, losses, income and charges. The figure can be found in the company's Profit and Loss Account. Equity is the total of ordinary share capital plus reserves, and both figures appear in the company's Balance Sheet. In calculating Return on Equity, you can use the Equity at the end of the year or the average between the opening and closing equity.


Further Suggestions

Return on equity (ROE)
Appel Loan (Accelerating Payoff Progressive Equity Loan)
Growing Equity Mortgage (GEM)
equity options
Deferred equity
GEM (growing equity mortgage)
general personal equity plan
TEFRA (Tax Equity and Fiscal Responsibility Act of 1983)
Equity Line Of Credit
Cost of equity
homeowners equity account
Euroequity issues
Leveraged equity
Sweat Equity
Stockholder equity
Equity options
Debt/equity swap
high equity
Equity floor
Owners equity
Shared equity transaction
Equity release
Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)
Stratified equity indexing
Sweat equity


 
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