Definition Of Equity Units

In tax year 2013 there was an equity unit that consisted of a debt component and a purchase contract component where the debt component of the unit was remarketed i e sold with the proceeds from the remarketing used to fund the purchase of replacement debt i e a treas ury strip within the unit.

Definition of equity units. Put another way equity is the difference between a company s total assets and total liabilities. While it invests pooled money like an equity etf an euit differs in. Such a position may be taken by a third party for a variety of reasons including the following. Equity position refers to an investment made by a third party in a business in exchange for stock.

The term restricted refers to the vesting schedule or the specified period that must elapse before you re paid the shares of stock. In equity comp taxes restricted stock units rsus are one way for companies to grant shares of company stock to employees. The third party may believe that it can earn a generous return by buying shares in the business. 2007 stock incentive plan that is or entitles the award recipient to receive a share of common stock of the company regardless of whether such unit is subject to a risk of forfeiture.

In finance equity is ownership of assets that may have debts or other liabilities attached to them. Equity unit means a unit awarded under a long term incentive compensation plan maintained by the company such as the bemis company inc. The equity units held by each member are set forth opposite such member s name on exhibit a attached hereto. An equity unit investment trust euit is a type of closed end investment fund that invests in the stocks of public companies.

Equity is measured for accounting purposes by subtracting liabilities from the value of an asset. For example if someone owns a car worth 9 000 and owes 3 000 on the loan used to buy the car then the difference of 6 000 is equity. In corporate finance equity more commonly referred to as shareholders equity refers to the amount of capital contributed by the owners. Equity unit investment trust an investment company that contains an unmanaged portfolio of stocks for approximately one year.

In investing equity refers to stock as ownership in a corporation. Equity units means a membership interest representing a fractional part of the membership interests of all members and having the rights and obligations specified with respect to equity units in this agreement.