Equilibrium Market Price of Risk Slant of the CML or capital market line. The CML represents returns offered in exchange for a level of perceived risk. Each point depicted on the CML represents an equilibrium state in the market. The slope measures the return needed in addition to … [Read more...]
Equilibrium Rate of Interest
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Equilibrium Rate of Interest Also termed market-clearing interest rate. The rate of interest that can clear the market. … [Read more...]
Equipment Trust Certificates
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Equipment Trust Certificates Trust issued certificates wherein the trust was created to acquire and lease an asset. At the time the last certificate is repaid, the lessee regains ownership of leased asset. … [Read more...]
Equitable Relief
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Equitable Relief Remedy granted by a court order ordering a party to carry out an act or refrain from an act. Provided in civil claims in the form of injunctions and/ or specific performance of an act. … [Read more...]
Equity
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Equity Denotes ownership in a company. Also refers to the remaining value in dollars of futures trading accounts, when liquidation will take place at going market price as per assumption. … [Read more...]
Equity Cap
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Equity Cap Formal agreement wherein a party agrees to recompense another, in exchange for a premium, at predetermined periods of time if a related benchmark, measuring stock market performance, is above a level determined beforehand. … [Read more...]
Equity Claim
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Equity Claim Alternatively termed residual claim. Claim made, after debt obligations are fulfilled, over a portion of earnings. … [Read more...]
Equity Collar
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Equity Collar An equity cap sale combined with simultaneous purchase of equity floor. … [Read more...]
Equity Contribution Agreement
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Equity Contribution Agreement Formal agreement, that comes into play under certain conditions, to put in equity towards a project. … [Read more...]
Equity Floor
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Equity Floor Formal agreement wherein one party undertakes to pay another at predetermined time periods when a given benchmark that measures stock market performance declines to a level below a predetermined one. … [Read more...]
Equity Fund
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Equity Fund Also termed stock fund. Mutual fund that has an investment focus on stocks and may be actively or passively managed. … [Read more...]
Equity Multiplier
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Equity Multiplier Denotes the magnitude/ quantity of total assets to each stockholder equity dollar. Calculated by dividing the total assets of the business by total equity formed by common stockholders. … [Read more...]
Equity Options
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Equity Options The right of buying or selling specific quantity of shares at a given price within a given time, that is afforded to the holder of a security. Normally, a 100 units or shares are encompassed in one option. … [Read more...]
Equity-Linked Policies
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Equity-Linked Policies Refer: Variable life. Some of the premium is invested in common stock. … [Read more...]
Equityholders
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Equityholders Individuals and entities that own the firm by means of holding its shares. … [Read more...]
Equivalent Annual Annuity
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Equivalent Annual Annuity Yearly amount for a given period measured in years that equals a given amount’s present value. … [Read more...]
Equivalent Annual Benefit
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Equivalent Annual Benefit Yearly annuity that equals the investment project’s NPV. … [Read more...]
Equivalent Annual Cash Flow
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Equivalent Annual Cash Flow An annuity that has same NPV as a planned investment of the company. … [Read more...]
Equivalent Annual Cost
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Equivalent Annual Cost Yearly cost incurred on a recurring basis to own and operate over its life, any asset used in the business. … [Read more...]
Equivalent Bond Yield
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Equivalent Bond Yield Yearly yield that is generated by a short term security that does not bear interest, calculated so that it is comparable to coupon security yields. … [Read more...]
