Equity cap

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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References in periodicals archive ?
The Insurance Laws (Amendment) Ordinance, 2014, was promulgated enhancing the foreign equity cap from 26 percent to 49 percent while safeguarding Indian ownership and control.
Higher foreign equity cap will help insurance companies get more capital, say experts.
The Union Cabinet has given approval to the relevant ordinances for holding auctions for coal blocks and to hike the foreign equity cap in the insurance sector to 49 per cent from the present 26 per cent.
The Japanese giant is also said to be keen to hike its stake in Reliance Life Insurance venture to 49 percent from 26 percent, as and when India notifies the decision of higher foreign equity cap in the sector and comes up with the norms.
According to the Company, investor demand exceeded the offering amount and fundraising closed ahead of its mandated period, and in September 2013, PEPF II accepted final capital commitments to reach the[euro]450 million ($610 million) equity cap for the offering.
INSURANCE LAWS ( AMENDMENT) BILL: It seeks to raise the foreign equity cap in insurance companies from 26% to 49%
Such a comparison is incorrect and would be equivalent to comparing an equity cap rate to an overall cap rate.
Free and Clear Equity Cap Rate in the Korpacz Survey.
57 per cent, still below the new equity cap of 45 per cent approved by the government recently.
For example, using the single-period capitalization calculation and the 20% equity cap rate in exhibit 2, $10,000,000/20% yields a $50,000,000 equity value, while $12,000,000/20% yields a $60,000,000 equity value, and $20,000,000/20% yields a $100,000,000 equity value.
Raising the equity cap presents an opportunity for U.
Interims: Clinigen Gp, Hays, Northamber, Strategic Equity Cap.