Secured Loans
Equilibrium rate of interest
The interest rate that clears the market. Also called the trade-clearing interest
rate.
Equipment trust certificates
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.
