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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 MatchesNegative equityNegative equityA 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. Equity optionsEquity optionsSecurities 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. Typically one option equals 100 shares of stock. Equity fundingEquity fundingAn investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, give the investor the advantages of insurance protection with the growth potential of a mutual fund. Equity linked policiesEquity linked policiesRelated: Variable life Equity release schemeEquity release schemeA 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. Further SuggestionsSweat equityWorld Equity Benchmark Series (WEBS) Return on equity (ROE) equity options Growing Equity Mortgage (GEM) Stockholder equity Equity linked Eurobonds Non Equity Option personal equity plan Shared equity transaction Equity Line Of Credit general personal equity plan All equity rate Stratified equity indexing Deferred equity Equity kicker homeowners equity account TEFRA (Tax Equity and Fiscal Responsibility Act of 1983) equity risk premium GEM (growing equity mortgage) Unlevered cost of equity return on equity Foreign equity market Preferred equity redemption stock (PERC) Debt/equity swap |
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