demand. Equilibrium rate of interest The interest rate that clears the market. Also called the trade-clearing interest rate. Equipment leasing partnership A limited partnership that receives income and tax benefits such as depreciation costs by purchasing equipment and leasing it to other parties. Equipment trust certificates Certificatesissued by a trust that is formed to purchase an asset and lease it to a lessee. When the last of the certificates has been repaid, title and ownership of the asset transfers to the lessee. Equitable owner The beneficiary of a property held in a trust. Equity Ownership interest in a firm. Also, the residual dollar value of a futurestrading account, assuming its liquidation is at the going trade price. In real estate, dollar difference between what a property could be sold for and debts claimed against it. In a brokerage account, equity equals the value of the account'ssecurities minus any debit balance in a margin account. Equity is also shorthand for stock marketinvestments. Equity cap An agreement in which one party, for an up-front premium, agrees to pay the other at specific time periods if a designated stock marketbenchmark tops a predetermined level. Equity carve out Usually occurs when a company decides to IPO one of their subsidiaries or divisions. The company usually only offers a minority share to the equity market. Also known as carve out. Equity claim Also called a residual claim; a claim to a share of earnings after debtobligations have been satisfied. Equity collar The simultaneous purchase of an equity floor and sale of an equity cap. Equity contribution agreement An agreement to contribute equity to a project under certain specified conditions. Equity floor An agreement in which one party agrees to pay the other at specific time periods if a specific stock marketbenchmark falls below a predetermined level. Equity funding An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. Equity kicker Stockwarrantsissued attached to a new debt, preferred or common stock issue to improve the salability of the issue. Equity-linked Eurobonds A Eurobond including a convertibility option or warrant. Equity-linked policies Related: Variable life Equity market Related: stock market Equity multiplier Total assets divided by total commonstockholders' equity; the total assets per dollar of stockholders' equity. Equity options Securities that give the holder the right (but not the obligation) to buy or sell a specified number of shares of stock, at a specified price for a certain (limited) time period. Typically one option equals 100 shares of stock. Equity REIT A Real Estate Investment Trust that assumes ownership status in the property it invests in enabling investors of the REIT to earn dividends on rental income from the property and appreciation in property resale. Antithesis of a Mortgage REIT. Equity swap A swap in which the cash flows exchanged are based on the total return on some stock marketindex and an interest rate (either a fixed rate or