Equity floor

Definition:

An agreement in which one party agrees to pay the other at specific time periods if a specific stock market benchmark falls below a predetermined level.

Investing Essentials


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

Term of the Day

Effective margin (EM)

Used with SAT performance measures, the amount equal to the net earned spread, or margin of income, on assets in excess of financing costs for a given interest rate and prepayment rate scenario.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio