16 diciembre 2009

Today's Term of the Day - equity

Ownership interest in a corporation in the form of common stock or preferred stock. It also refers to total assets minus total liabilities, in which case it is also referred to as shareholder's equity or net worth or book value. In real estate, it is the difference between what a property is worth and what the owner owes against that property (i.e. the difference between the house value and the remaining mortgage or loan payments on a house). In the context of a futures trading account, it is the value of the securities in the account, assuming that the account is liquidated at the going price. In the context of a brokerage account, it is the net value of the account, i.e. the value of securities in the account less any margin requirements.

Ownership interest in a corporation in the form of common stock or preferred stock.

Total assets minus total liabilities; here also called shareholder's equity or net worth or book value.

The value of a property minus the owner's outstanding mortgage balance.

15 diciembre 2009

Financial terminology

Term of the Day

For Tuesday, December 15, 2009

escrow

Definition

Arrangement under which a deed, money, security, or other property or document is held by a neutral third-party (called an escrow agent) in trust for a first-party (called grantor, obligor, or promisor) for a specified period or until the occurrence of a condition or event. The escrow agent is duty bound to deliver the asset or document in his or her possession to a named second-party (called grantee, obligee, or promisee) upon the fulfillment of the condition(s) or the happening of a stated event, as established in the escrow agreement.

escrow is in the Accounting & Auditing, Banking, Commerce & Finance and Corporate, Commercial, & General Law subjects.

escrow appears in the definitions of the following terms: principal, interest, taxes, and insurance (PITI) and advance refunding.

This content can be found on the following page:

http://www.businessdictionary.com/definition/escrow.html