Equity cap

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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 market benchmark tops a predetermined level.

Equity Cap

1. The maximum amount of equity in a company an investor or class of investors is allowed to hold. A government may place an equity cap on the amount of equity a foreign national or company may possess in domestic companies, or in certain industries thought to be important.

2. Informal for equity capital. Equity capital is money raised by owners of a company. A common example of equity capital is the funding raised by issuing stock.
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New Delhi, Sept 15 ( ANI ): Welcoming further liberalization of FDI Policy through increase in equity caps in Civil Aviation, Power Trading Exchanges, Broadcasting and opening up of Multi Brand Retail for FDI, Mr Adi Godrej, President CII said that "today's announcements on FDI Caps has restarted the reform process", in a press statement.
Yet, equity caps limit the size of potential new inflows, while national security concerns might prompt more oversight of FDI approval processes.
Gutierrez, who succeeded Donald Evans in his cabinet post, is already familiar with the financial and political situation in the Middle East, having made a well-regarded trip in 2006, during which he argued forcefully that the world's main oil producer - Saudi Arabia - could attract more investment to strengthen and diversify its economy by relaxing equity caps on foreign business ownership.
Two noted authors, Michael and Anthony Perkins, created a market basket of Internet stocks, as of June 11, 1999, based upon 13 publicly traded Internet companies with equity caps of $100 million or greater.
India Business Council (USIBC) today hailed India's progress in advancing major economic reforms with the Cabinet's approval of opening India's multi-brand retail sector to foreign direct investment (FDI), and increasing equity caps in civil aviation, broadcasting, and power trading exchanges.