Equity Participation

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Dictionary Says

Definition of 'Equity Participation'

Ownership of shares in a company or property. Equity participation may involve the purchase of shares through options or by allowing partial ownership in exchange for financing. The greater the equity participation rate, the higher the percentage of shares owned by stakeholders. Allowing stakeholders to own shares ties the stakeholders' success with that of the company or real estate investment. In this case, a more profitable company will provide stakeholders with greater gains.
Investopedia Says

Investopedia explains 'Equity Participation'

Equity participation is used in many investments for two primary reasons. First, it is used to tie the financial rewards of executives to the fate of the company, increasing the likelihood that executives will make decisions that will improve company profitability. This type of compensation may be delayed, reducing the possibility of executives making short-term decisions to boost share price. Second, it is used by companies operating in emerging economies in which local governments want to reap the rewards brought on by development. Moreover, share ownership also allows local governments a say in company decisions.
Search results for

'Equity Participation'

  • Are Equity-Indexed Annuities Right For You?

    http://www.investopedia.com/articles/basics/10/are-equity-index-annuities-right-for-you.asp
    ... The SEC?). The most common features that impact the return on equity-linked annuities
    are the participation rates, the spread, margin and asset fee, and the ...

  • Does participation in a 401(k) plan prevent an individual from ...

    http://www.investopedia.com/ask/answers/03/080603.asp
    ... The participation in an employer-sponsored plan may, however, affect the individual's
    ability to ... Read More ยป. Bank Rates. Savings; Home Equity; Mortgage; Auto. ...

  • The 6 Most Common Portfolio Protection Strategies

    http://www.investopedia.com/articles/basics/11/5-portfolio-protection-strategies.asp
    ... Investments Investors who are worried about protecting their principal might want
    to consider principal-protected notes with equity participation rights. ...

  • Series 7 Study Guide - Equities - Direct Participation Programs ...

    http://www.investopedia.com/exam-guide/series-7/equities/direct-participation-program.asp
    ... There is another class of equity ownership that does not involve exchange ... Direct
    participation programs (DPPs) enable investors to have an immediate claim on an ...

  • Long-Term Investing With Equity Index CDs

    http://www.investopedia.com/articles/bonds/09/equity-index-cds.asp
    ... Equity Index CDs have also been known as "market indexed CDs," or "index-linked
    CDs." Their names, time to maturity, participation rate and the method of ...

  • How The Big Boys Buy

    http://www.investopedia.com/articles/stocks/07/mergers.asp
    ... These take on the form of additional cash incentives, higher commissions as a
    percentage of transaction value, equity participation in the deal, and ...

  • No Need To Rush End-Of-Career Retirement Planning

    http://www.investopedia.com/articles/retirement/08/IRA-transfer.asp
    ... Time-pressured rollovers often result in a major decrease in equity
    participation, with more emphasis on fixed-income investments. ...

  • Series 7 Study Guide - Equities - Equity Terminology ...

    http://www.investopedia.com/exam-guide/series-7/equities/equity-term.asp
    ... Equities - Equity Terminology. Each type of equity position will be discussed in
    turn, but first you need a working vocabulary to understand the discussion. ...

  • Series 7 Study Guide - Derivatives - Long Term Equity Anticipation ...

    http://www.investopedia.com/exam-guide/series-7/derivatives/long-term-anticipation-securities-leaps.asp
    ... 3.2 Equity Terminology; 3.3 Common stock; 3.4 Types of Stock; 3.5 Dividends and ... 3.10
    Direct Participation Programs (DPPs); 3.11 Special Products. 4. Debt Securities ...

  • CalPERS Remains Focused

    http://stocks.investopedia.com/stock-analysis/2009/CalPERS-Remains-Focused-SPY-BLV-GLD-VWO-VNQ-TIP0226.aspx
    ... market environment. Participation in equity investments in 2008 was
    particularly painful given the 38% fall of the S&P 500. Let's ...

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