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Equity |
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EquityShare in the ownership of a corporation; more commonly called a stock, as in the stock market.EquityThe value of a person's interest in real property after all liens and charges have been deducted.EquityThe 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 MatchesEquity releaseEquity releaseEquity release or home income schemes allow you to generate either a lump some or a regular income in return for allowing the lender to take ownership of a portion of your home. These are often used by people in later stages of life who have paid of all or most of their mortgage and who are looking to raise funds without borrowing money. Return on equityReturn on equityThe 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. Equity floorEquity floorAn 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. Debt/equity swapDebt/equity swapAn exchange of debt for equity, in which a lender is given a share of ownership to replace a loan. Used as a method of resolving debt crises. Carrot equityCarrot equityBritish slang for an equity investment with the added benefit of an opportunity to purchase more equity if the company reaches certain financial goals. Further SuggestionsEquity linked mortgageGEM (growing equity mortgage) All equity rate equity release scheme Equity kicker Equity linked Eurobonds Stockholder equity negative equity Deferred equity Dual syndicate equity offering debt to equity ratio equity risk premium Growing Equity Mortgage (GEM) personal equity plan Equity funding Sweat Equity Stratified equity indexing Equity linked policies Non Equity Option Prices (of equity) Debt for equity swap Salomon Brothers World Equity Index (SBWEI) Growing Equity Mortgage (gem) Foreign equity market equity options |
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