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Certificates issued by a trust that was formed to purchase an asset and lease it to a lessee. When the last of
the certificates has been repaid, title ownership of the asset transfers to the lessee.
Equity
Represents ownership interest in a firm. Also the residual dollar value of a futures trading account, assuming
its liquidation occurs at the going trade price.
Equity cap
An agreement in which one party, for an upfront premium, agrees to compensate the other at specific time
periods if a designated stock market benchmark is greater than a predetermined level.
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 floor
An agreement in which one party agrees to pay the other at specific time periods if a specific stock market
benchmark is less than a predetermined level.
Equityholders
Those holding shares of the firms equity.
Equity kicker
Used to refer to warrants because they are usually issued attached to privately placed bonds.
Equity-linked policies
Related: Variable life
Equity market
Related:Stock market
Equity multiplier
Total assets divided by total common stockholders equity; the amount of total assets per dollar of
stockholders equity.
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. Typically one option equals 100 shares of stock.
Equity swap
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