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. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • equity cap — An agreement in which one party, for an up front premium, agrees to pay the other at specific time periods if a designated stock market benchmark tops a predetermined level. Bloomberg Financial Dictionary …   Financial and business terms

  • Equity collar — The simultaneous purchase of an equity floor and sale of an equity cap. The New York Times Financial Glossary …   Financial and business terms

  • equity collar — The simultaneous purchase of an equity floor and sale of an equity cap. Bloomberg Financial Dictionary …   Financial and business terms

  • Equity-indexed annuity — An equity index annuity in the United States is a type of tax deferred annuity whose credited interest is linked to an equity index SEE EXAMPLE HERE>> [http://ffradvisor.com/marketindex.html] , and typically uses the S P 500 or international… …   Wikipedia

  • Equity-Linked Security - ELKS — A hybrid debt instrument that is linked to the equity markets. Equity linked securities can be in the form of a single stock, a group of stocks or an equity based index, such as the S P 500. The return on investment is dependent upon the… …   Investment dictionary

  • equity — /ek wi tee/, n., pl. equities. 1. the quality of being fair or impartial; fairness; impartiality: the equity of Solomon. 2. something that is fair and just. 3. Law. a. the application of the dictates of conscience or the principles of natural… …   Universalium

  • Equity Style Box — A visual representation of the principle investment characteristics of stocks and stock mutual funds. The style box was created by Morningstar and is a valuable tool for investors to use to determine the risk return structures of their… …   Investment dictionary

  • equity capital — eq′uity cap ital n. bus that portion of the capital of a business provided by the sale of stock • Etymology: 1960–65 …   From formal English to slang

  • Private equity — In finance, private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. There is a wide array of types and styles of private equity and the term private equity has… …   Wikipedia

  • Private equity secondary market — In finance, the private equity secondary market (also often called private equity secondaries or secondaries) refers to the buying and selling of pre existing investor commitments to private equity and other alternative investment funds. Sellers… …   Wikipedia

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