What Is Equity Participation? Equity participation refers to the ownership of shares in a company or property. Equity participation may involve the purchase of shares through options or by allowing partial ownership in exchange for financing. The greater the equity participation rate, the higher the percentage of shares owned by stakeholders. Allowing stakeholders to own
What Is Equity Stripping? Equity Stripping is a set of strategies designed to reduce overall equity in a property. Equity stripping strategies can be used by debtors as means of making properties unattractive to creditors, as well as by predatory lenders looking to take advantage of homeowners facing foreclosure. Key Takeaways Equity stripping is an
What Is an Equity Swap? An equity swap is an exchange of future cash flows between two parties that allows each party to diversify its income for a specified period of time while still holding its original assets. An equity swap is similar to an interest rate swap, but rather than one leg being the
What Is an Equity Unit Investment Trust (EUIT)? An equity unit investment trust (EUIT) is a closed-end, publicly offered pooled trust fund managed by an investment company. In particular, an EUIT will only invest in the stocks of publicly traded corporations. Key Takeaways An equity unit investment trust (EUIT) is a type of closed-end investment
What Is the Equivalent Annual Annuity Approach? The equivalent annual annuity approach is one of two methods used in capital budgeting to compare mutually exclusive projects with unequal lives. The EAA approach calculates the constant annual cash flow generated by a project over its lifespan if it was an annuity. When used to compare projects with unequal
What Is an Equivalent Flat Rate? The term “equivalent flat rate” is used in the context of the insurance industry within the European Union (EU). Specifically, it relates to the methods used by the EU to regulate the insurance industry in order to ensure that insurance policyholders will have their claims honored even if their
Eric S. Maskin is an economist, mathematician, and Nobel prize winner. His areas of research include game theory, incentives, auction design, contract theory, social choice theory, political economy, and intellectual property. In 2007, he shared the Nobel Memorial Prize in Economic Sciences with Leonid Hurwicz and Roger Myerson for their work on the foundations of
What Is the Employee Retirement Income Security Act (ERISA)? The Employee Retirement Income Security Act (ERISA) is a federal law that protects the retirement assets of American workers. The law, which was enacted in 1974, implemented rules that qualified plans must follow to ensure that plan fiduciaries do not misuse plan assets. It also covers certain non-retirement
What Is Enterprise Resource Planning (ERP)? Enterprise resource planning (ERP) is a platform companies use to manage and integrate the essential parts of their businesses. Many ERP software applications are critical to companies because they help them implement resource planning by integrating all the processes needed to run their companies with a single system. An
What Is an Emissions Reduction Purchase Agreement (ERPA)? An Emissions Reduction Purchase Agreement (ERPA) is a legal contract between entities who buy and sell carbon credits. A carbon credit is a permit or certificate that allows the holder to emit carbon dioxide (CO2) or other greenhouse gases (GHG) into the atmosphere. In a type of
