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Stratified equity indexing |
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Definition of Stratified equity indexingStratified equity indexingA method of constructing a replicating portfolio in which the stocks in the index
Related Terms:All equity rateThe discount rate that reflects only the business risks of a project and abstracts from the Asset/equity ratioThe ratio of total assets to stockholder equity. Bond indexingDesigning a portfolio so that its performance will match the performance of some bond index. Bottom-up equity management styleA management style that de-emphasizes the significance of economic Common stock/other equityValue of outstanding common shares at par, plus accumulated retained Debt/equity ratioIndicator of financial leverage. Compares assets provided by creditors to assets provided Deferred equityA common term for convertible bonds because of their equity component and the Dual syndicate equity offeringAn international equity placement where the offering is split into two Enhanced indexingAlso called indexing plus, an indexing strategy whose objective is to exceed or replicate EquityRepresents ownership interest in a firm. Also the residual dollar value of a futures trading account, Equity capAn agreement in which one party, for an upfront premium, agrees to compensate the other at Equity claimAlso called a residual claim, a claim to a share of earnings after debt obligation have been Equity collarThe simultaneous purchase of an equity floor and sale of an equity cap. Equity contribution agreementAn agreement to contribute equity to a project under certain specified Equity floorAn agreement in which one party agrees to pay the other at specific time periods if a specific Equity kickerUsed to refer to warrants because they are usually issued attached to privately placed bonds. Equity marketRelated:Stock market Equity multiplierTotal assets divided by total common stockholders' equity; the amount of total assets per Equity optionsSecurities that give the holder the right to buy or sell a specified number of shares of stock, at Equity swapA swap in which the cash flows that are exchanged are based on the total return on some stock Equity-linked policiesRelated: Variable life EquityholdersThose holding shares of the firm's equity. Euroequity issuesSecurities sold in the Euromarket. That is, securities initially sold to investors Foreign equity marketThat portion of the domestic equity market that represents issues floated by foreign companies. GEMs (growing-equity mortgages)Mortgages in which annual increases in monthly payments are used to IndexingA passive instrument strategy consisting of the construction of a portfolio of stocks designed to Investor's equityThe balance of a margin account. Related: buying on margin, initial margin requirement. Leveraged equityStock in a firm that relies on financial leverage. Holders of leveraged equity face the Long-term debt to equity ratioA capitalization ratio comparing long-term debt to shareholders' equity. Optimization approach to indexingAn approach to indexing which seeks to Optimize some objective, such Preferred equity redemption stock (PERC)Preferred stock that converts automatically into equity at a Return on equity (ROE)Indicator of profitability. Determined by dividing net income for the past 12 Shareholders' equityThis is a company's total assets minus total liabilities. A company's net worth is the Stockholder equityBalance sheet item that includes the book value of ownership in the corporation. It Stockholder's equityThe residual claims that stockholders have against a firm's assets, calculated by Stratified sampling approach to indexingAn approach in which the index is divided into cells, each Stratified sampling bond indexingA method of bond indexing that divides the index into cells, each cell Top-down equity management styleA management style that begins with an assessment of the overall Total debt to equity ratioA capitalization ratio comparing current liabilities plus long-term debt to RATE OF RETURN ON STOCKHOLDERS’ EQUITYThe percentage return or profit that management made on each dollar stockholders invested in a company. Here’s how you figure it: RATIO OF DEBT TO STOCKHOLDERS’ EQUITYA ratio that shows which group—creditors or stockholders—has the biggest stake in or the most control of a company: STOCKHOLDERS’ (OR OWNERS’) EQUITYThe value of the owners’ interests in a company. EquityFunds raised from shareholders. Contra-equity accountAn account that reduces an equity account. An example is Treasury stock. EquityAmounts contributed to the company by the owners (contributed capital) plus the residual earnings of the business (retained earnings). Shareholders' equityThe total amount of contributed capital and retained earnings; synonymous with stockholders' equity. Stockholders' equityThe total amount of contributed capital and retained earnings; synonymous with shareholders’ equity. debt-to-equity ratioA widely used financial statement ratio to assess the equityRefers to one of the two basic sources of capital for a business, the owners' equityRefers to the capital invested in a business by its shareowners return on equity (ROE)This key ratio, expressed as a percent, equals net stockholders' equity, statement of changes inAlthough often considered Cost of EquitySame as the cost of common stock. Sometimes viewed as the Return on Common Equity RatioA measure of the percentage return earned on the value of the EquityThe difference between the total of all recorded assets and liabilities on the balance Owners' equityThe total of all capital contributions and retained earnings on a business’s EquityOwnership. Common stock represents equity in a corporation. Equity MethodAccounting method for an equity security in cases where the investor has sufficient Equity SecurityAn ownership interest in an enterprise, including preferred and common stock. Shareholders' EquityThe residual interest or owners' claims on the assets of a corporation Debt/Equity RatioA comparison of debt to equity in a company's capital structure. EquityThe net worth of a business, consisting of capital stock, capital (or paid-in) surplus (or retained earnings), and, occasionally, certain net worth reserves. Common equity is that part of the total net worth belonging to the common shareholders. Total equity includes preferred shareholders. The terms common stock, net worth, and common equity are frequently used interchangeably. Equity Buy-BackRefers to the investors percentage ownership of a company that can be re-acquired by the company, usually at a pre-determined amount. Quasi-EquityFunds, other than paid-up capital and retained earnings, employed in a business and which will remain in a business as permanent capital. Shareholder's EquityRepresents the total assets of a corporation less liabilities. equityThe net worth of a company. This represents the ownership interest of the shareholders (common and preferred) of a company. For this reason, shares or stocks are often known as equities. Equity-based insuranceLife insurance or annuity product in which the cash value and benefit level fluctuate according to the performance of an equity portfolio. Equity investmentThrough equity investment, investors gain part ownership of the corporation. The primary type of equity investment is corporate stock. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |