Encyclopedia of Investment Terminology

Return to Stock Market and Investment Encyclopedia Index

Equity Swaps

In an equity swap a contract is held between two groups. This contract involves moving two financial investments between one another. They generally work with different rates that are offered by banks. For instance, one group can perform an equity swap where an amount of cash is exchanged at a rate based on equity, as through stock values or bank rates and in turn that group can get a fixed amount of money from a second party.

Return to Index

Copyright 2008 StockDic.com
All Rights Reserved.