Related Words

Common Equity: A nine-digit identification code issued jointly by CEDEL and Euroclear. As of January 1991 common codes replaced the earlier separate CEDEL and Euroclear codes.

Home Equity Line Of Credit (HELOC): Sometimes referred to as a HELOC, a home equity line of credit lets you borrow against the equity you’ve built in your home, usually by using a debit card or writing checks against your avai . . . View Full Definition

Home Equity Loan: A loan made to a current homeowner that is secured by the equity in the home.

Growing-Equity Mortgage (GEM): A loan in which the monthly payments increase annually, with the increased amount being used to reduce directly the principal balance outstanding and thus shorten the overall term of the loan.

Growing Equity Mortgage (GEM): A fixed rate, graduated payment loan allowing low beginning payments and a shorter term because of higher payments as the loan progress. Based on the theory of increasing income by the buyer . . . View Full Definition

GEM (Growing Equity Mortgage): Financial leverage.

Homeowners Equity Account: Idea that as long as individuals borrow (or lend) on the same terms as the firm, they can duplicate the effects of corporate leverage on their own. Thus, if levered firms are priced too high . . . View Full Definition

Foreign Equity Market: The acquisition abroad of physical assets such as plant and equipment, with operating control residing in the parent corporation.

Internal Equity: A term used to refer to employees’ perceived fairness of a company’s pay structure as it relates to their responsibilities, compensation, benefits, and working conditions compared with thos . . . View Full Definition

Long-Term Equity Anticipation Securities (LEAPS): These long-term options on stocks have expiration dates of up to three years rather than the shorter terms of most stock options, which are never longer than nine months. The benefit of LEAP . . . View Full Definition