Business Finance

Endowment assurance is a type of life insurance policy that combines both insurance coverage and a savings plan. It ensures that the policyholder or their beneficiaries receive a lump sum payment either upon the policyholder’s death or when the policy matures, whichever comes first. This product is designed to provide financial security through insurance protection […]

An endowment mortgage is a type of home loan that combines an interest-only mortgage with an investment product known as an endowment policy. The borrower pays only the interest on the mortgage loan each month, while simultaneously making contributions to an endowment policy. The idea is that the endowment policy will grow over time and,

Equipment Trust Certificates (ETC) are financial instruments used primarily in the aviation and railroad industries to finance the acquisition of equipment, such as aircraft or locomotives. They represent a type of secured debt where investors provide funds to purchase specific equipment, and these certificates are backed by the equipment itself. ETCs are structured securities that

Equitable interest refers to a beneficial interest in property that is recognized and protected by equity (fairness and justice) rather than by strict legal ownership. It gives a person the right to benefit from the property, including receiving income or possessing it, even though legal title may belong to someone else. This concept is significant

Equity refers to the ownership interest in a company or entity. It represents the residual value of assets after deducting liabilities. In simpler terms, it is what remains for the owners or shareholders of a business after all debts and obligations have been settled. Equity is a crucial concept in finance and accounting, reflecting the

Equity accounting is a method used in accounting to treat investments in associated companies where the investor has significant influence but does not have control like a parent-subsidiary relationship. It is also known as the equity method of accounting. Equity accounting allows the investor to recognize its share of the profits or losses of the

Equity capital refers to funds raised by a company through the sale of shares to investors. It represents the ownership interest of shareholders in a company, entitling them to voting rights and a share in the company’s profits. Equity capital is a crucial component of a company’s capital structure, providing financial stability and flexibility for

Equity dilution refers to a decrease in the ownership percentage of existing shareholders in a company due to the issuance of additional shares. This reduction typically occurs when new shares are issued, which can happen through various mechanisms such as secondary offerings, employee stock options, convertible securities, or warrants. Equity dilution can impact existing shareholders’

Equity dividend cover is a financial ratio used to assess a company’s ability to pay dividends to its shareholders from its earnings. It measures the number of times a company’s earnings per share (EPS) can cover the dividend per share (DPS) it declares. In simpler terms, it indicates how many times a company’s profits exceed

Equity finance refers to a method of raising capital for a company or project by selling ownership shares to investors in exchange for funds. Unlike debt finance, which involves borrowing money that needs to be repaid with interest, equity finance does not create a debt obligation. Instead, investors become partial owners of the company and