equity

Equity is a term used in finance to define the value of an ownership interest in property. It is the interest of the junior classes of investors after all liability is paid. The appropriate term for when the liability exceeds the assets is negative equity. Stockholder's equity is used in accounting to refer to the remaining interest in assets, divided between individual stockholders.

Home equity represents the difference between the fair market value and the unpaid mortgage value for a home. When the property value appreciates or as the debtor starts to make payments against the mortgage value, the property's equity increases.

Private equity denominates a type of asset comprised of equity securities in various companies that are not publicly traded on a stock exchange. Private equity firms, informal investors and venture capital firms will usually make private equity investments.

Equity release refers to the means by which an individual can raise money against the value of their home, without any regular payments. In the United Kingdom, there currently are three types of equity release plans, namely lifetime mortgage, home reversion plans and draw-down lifetime mortgages.

Lifetime mortgages enable home owner to release a tax free sum of money against their property, to be spent freely. The home owner is able to live in their home for the rest of their life, or until they are moved into a care facility, after which the loan is returned in full.

Home reversion plans allow home owner to sell a part of their home in return for a sum of money, which again, can be spent freely. This enables the home owner to pass a percentage of the home as inheritance to their family.

A drawdown lifetime mortgage is similar to a lifetime mortgage, with the only difference that the money must be drawn in stages. This type of equity release plan is currently one of the most popular in the UK.


Equity is also a legal term used to denote a set of principles in common law jurisdictions. It is usually said that equity can "mitigate the rigor of common law", by allowing courts to apply justice in accordance to natural law, as it is understood in contemporary jurisprudence.

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Original Technorati articles tagged “equity”

• in Finance
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Latest blogosphere posts tagged “equity”

 

• Glass giant Corning to invest in Silicon Valley startup View

  
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  SAN FRANCISCO, June 18 (Reuters) - Speciality glass company Corning is leading a $60 million investment in View Inc, a maker of energy-saving glass that automatically adjusts the amount of heat and...
  15 hours ago

• China Mengniu Dairy Offers $1.6 Billion for Baby Formula Firm

  
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  China Mengniu, the biggest Chinese dairy producer, said its proposed takeover of Yashili International, a leading infant milk formula maker in China that is partly owned by the Carlyle Group, would "ensure that consumers continue to enjoy unchanged quality commitment."
  15 hours ago

• MOVES-Goldman Sachs, MilleniumAssociates

  
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  June 18 (Reuters) - The following financial services industry appointments were announced on Tuesday. To inform us of other job changes, email to moves@thomsonreuters.com.
  15 hours ago

• UPDATE 1-Chinas Mengniu adds another deal with offer for Carlyles Yashili

  
  — Authority:
  HONG KONG, June 18 (Reuters) - China Mengniu Dairy Co Ltd signed a second takeover deal in a month on Tuesday, offering to buy Carlyle-backed Yashili International Holdings Ltd in a deal worth about...
  15 hours ago

• EU mergers and takeovers (June 18)

  
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  BRUSSELS, June 18 (Reuters) - The following are mergers under review by the European Commission and a brief guide to the EU merger process:
  15 hours ago

• Goldmans Gilday becomes head of CLO origination

  
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  LONDON, June 18 (IFR) - Ian Gilday, Goldman Sachs former head of EMEA syndicate and leveraged capital markets, has assumed a new role as head of origination for collateralised loan obligations...
  16 hours ago

• Spendthrift elite signals equity slide, behavioural experts warn

  
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  By Atul Prakash LONDON (Reuters) – Record prices at art auctions in recent weeks and oversubscribed holidays by private jet are among signals that a stock market slump is approaching, if followers of behavioural finance are to be believed. They insist social mood governs human action, including investment on stock ...
  16 hours ago

• Spendthrift elite signals equity slide, behavioral experts warn

  
  — Authority:
  By Atul Prakash LONDON (Reuters) – Record prices at art auctions in recent weeks and oversubscribed holidays by private jet are among signals that a … Continue reading → Read the full story: Spendthrift elite signals equity slide, behavioral experts warn from: Technology News | ElectroGeek
  16 hours ago

• AIRSHOW-High returns and demand lure investors to funding planes

  
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  PARIS, June 18 (Reuters) - The only way to make a small fortune in the airline industry is to start with a big fortune, so the joke goes.
  17 hours ago

• The WA Women’s Society of Fine Arts and Crafts Equity Scholarship in Australia, 2013

  
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  Edith Cowan University offers WA Women’s Society of Fine Arts and Crafts Equity Scholarship for ECU female student in Australia. Scholarship is provided .. [Read Full Scholarship Detail]
  17 hours ago

• China Mengniu Dairy offers to buy Carlyles Yashili for nearly $1.5 bln

  
  — Authority:
  HONG KONG, June 18 (Reuters) - China Mengniu Dairy Co Ltd said on Tuesday it had offered to buy Yashili International Holdings Ltd for HK$11.4 billion ($1.47 billion), its second takeover in a month.
  17 hours ago

• Spendthrift elite signals equity slide, behavioral experts warn

  
  — Authority:
  By Atul Prakash LONDON (Reuters) – Record prices at art auctions in recent weeks and oversubscribed holidays by private jet are among signals that a stock market slump is approaching, if followers of behavioral finance are to be believed. They insist social mood governs human action, including investment on stock ...
  17 hours ago

• Russias Tinkoff selects banks for share listing - source

  
  — Authority:
  MOSCOW, June 18 (Reuters) - Russian credit card supplier Tinkoff Credit Systems (TCS) has selected banks to organise a stock market listing, a source close to the placement said on Tuesday.
  18 hours ago

• EQUITY TIPS

  
  — Authority:
  EQUITY TIPS This service tips is basically provided for NSE stock cash dealers and Research via ultra equity tips accuracy level is much more than your expectations levels with the help of this accuracy level one can easily earn more and more profit in ultra equity intraday calls. Share market is very volatile market ...
  18 hours ago

• Today 18th June 2013 NSE BSE Intraday Tips Calls || TRAI Policy Updates || Rupee again opened with Weak Position

  
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  For Free Trial Click Here 18/06/2013 Tuesday, Nifty SENSEX opened in mixed note. Nifty opened in negative zone at 5,841.90 and BSE SENSEX opened in positive zone was at 19,329.17 with the increment of 3.3 points. Indian Rupee also opened with weak side, it opened lower by 39 paise at 58.25 per ...
  18 hours ago

• Frontrunning: June 17

  
  — Authority:
  Obama prepares for chilly talks with Putin over Syria ( Reuters ) G8 opens amid dispute on Syria arms ( FT ) Economists Blame Fed for Higher Bond Yields ( WSJ ) - wait... what? Isnt the "stronger economy" to blame? What a novel concept - In the Czech Republic, a spying scandal has forced the PM to resign ( BBG ) ...
  1 day ago

• Private equity exits hit by economic uncertainty

  
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  LONDON, June 17 (Reuters) - The rate at which private equity firms exited their European investments slowed last year, a study showed on Monday, as economic uncertainty hit both new stock market...
  1 day ago

• Rockwood to sell its CeramTec Business to Private Equity Firm Cinven

  
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  A Fathers’ Day news release announces a definitive agreement for Rockwood Holdings, Inc. (NYSE:ROC) to sell CeramTec, its ceramics business (maker of hips and other medical devices, cutting tools and industrial products) for US$1.98bn to private equity firm, Cinven. The US$1.98bn in gross proceeds reflects an ...
  1 day ago

• RLPC-Banks line up 1 bln euros of debt for Ceramtec buyout

  
  — Authority:
  LONDON, June 17 (Reuters) - Private equity firm Cinven has sealed around 1 billion euros in financing from Deutsche Bank, RBC and UBS for its 1.5 billion euro ($1.99 bln) buyout of industrial...
  1 day ago

• Deals of the day -- mergers and acquisitions

  
  — Authority:
  June 17 (Reuters) - The following bids, mergers, acquisitions and disposals were reported by 1000 GMT on Monday:
  1 day ago

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