Equipment trust certificates

Definition:

Certificates issued 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.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Property, Plant and Equipment (PP&E)

Tangible, long-lived assets that a company owns and uses in its operations, rather than simply holding them as an investment. This includes buildings, construction, facilities, machinery etc. and is... Read More

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