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Non Equity Option |
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Non Equity OptionAn option whose underlying entity is not common stock; typically refers to options on physical commodities and index options.Non Equity Option Similar MatchesEquity risk premiumEquity risk premiumThe concept that justifies investment in stocks, where your capital is at risk, rather than gilt-edged bonds which are as safe an investment as you can get and where your capital is not at risk provided you hold the bond til maturity.The theory goes that it is only worth investing in stocks if the return you get exceeds the return you could get on gilts - otherwise, why would you take on the extra risk? The difference in returns is known as the equity risk premium.Every historical analysis of returns achieved by stocks compared to bonds shows that stocks outperform bonds in the long term. This is why you repeatedly hear pundits say that the stock market, while risky in the short term, is not risky in the long term. The key thing, as a private investor, is to leave your money in the market for long enough for the long term benefit to eradicate the short term risk. Stick your money in the market for two months, and it might go down 20% if you are unlucky. Stick it in a well-diversified portfolio for 30 years, and it should produce returns that comfortably exceed what you could have got from bonds. Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)Legislation to increase tax revenue by eliminating various taxation loopholes and instituting tougher enforcement procedures in collecting taxes. Equity Line Of CreditEquity Line Of CreditA combination of a line of credit and equity loan. A maximum loan amount is established based on credit and equity. A mortgage (deed of trust) is recorded against the potential borrower's property for said maximum loan amount. The potential borrower has the right to borrow, as needed, up to the amount of the mortgage. Cost of equityCost of equityThe required rate of return for an investment of 100% equity. 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. Further SuggestionsEquity REITRegistered equity market maker World Equity Benchmark Series (WEBS) Foreign equity market Debt/equity swap Top down equity management style personal equity plan Prices (of equity) Equity linked mortgage equity Equity release Appel Loan (Accelerating Payoff Progressive Equity Loan) equity release scheme Sweat Equity Equity linked policies Owners equity Stockholder equity equity options negative equity All equity rate Growing Equity Mortgage (GEM) homeowners equity account Salomon Brothers World Equity Index (SBWEI) Equity Shared equity transaction |
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