From ANZ Financial DictionaryCouldn't find Equity Finance...

From ANZ Financial Dictionary

Couldn't find Equity Finance Defined..which is funny because ANZ Custodians had a whole department or desk that lent $2bn at its height.

I remember television advertisements from the major banks promoting Equity Finance ..ie take a loan against the equity on your house/property to buy a rental property/car/boat etc

I would have thought the common definition was you retained your equity...not some sale and call back arrangement that an Amsla is

My current prattle ..is an attempt to say even the division was inappropriately named ..



Equity

The part of something - asset, house or company - which you own. What the professionals call shares. If you lend a company money, you have made a loan and rank as a creditor who, under normal circumstances, would expect repayment of the loan plus interest at a future date. If you buy ordinary shares in a company you become an equity-holder in that company, which means you share in its profits (and losses) and have a less clear-cut idea of your future returns than does a lender. As an ordinary shareholder, you stand in line behind debenture-holders for settlement, should the company be wound up. You cannot rely on a fixed return, and you run the risk of loss, but in return for this you have a share in the company's surplus during good times. You also have equity in that part of the value of your house above the amount borrowed from the lender which has the mortgage over your house. Economists, as well as other people, use 'equity' in its original sense of fairness or impartiality.



Estoppel

A legal doctrine which has evolved over the past couple of centuries, which essentially means that an individual cannot deny the truth of a statement made by him or her, or the existence of facts on which other people have relied because of his or her words or behaviour. Estoppel broadly means that someone is stopped or prevented from saying, doing or contesting something. The word is derived from the old French estoupail meaning 'cork'; the modern French etouper means 'to stop up'. A form of estoppel is 'equitable estoppel'; this would apply, for example, in the case of a neighbour building on your land, presuming it to be his. If you let him go ahead instead of telling him it is your land, equity would not allow you later to require him to remove the building from your land.