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Find definitions to many financial terms.

Please select the first letter of the word you are looking for, then scroll the page to find that word.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Earnest Money
Money given by a buyer to a seller as part of the purchase price to bind a transaction or assure payment.

Equity
In real estate, the difference between fair market value and current indebtedness, usually referred to as the owner's interest.

Equity Credit Line (ECL)
A combination of a line of credit and equity loan. A maximum loan amount is established based on credit and equity. A mortgage is recorded against the potential borrower's property for said maximum loan amount. The potential borrower has the right to borrower, as needed, up to the amount of the mortgage.

Equity Securities
A share of ownership in a company, usually represented by stock. Equities are further divided into subclassifications based on their market capitalization and their country of incorporation.

Escrow
A transaction in which a third party, acting as the agent for the buyer and seller, carries out instructions of both and assumes the responsibilities of handling all the paperwork and disbursement of funds.

Escrow Account
An amount set up by the lender into which the borrower makes periodic payments, usually monthly, for taxes, hazard insurance, assessments, and private mortgage insurance premiums, if applicable. The funds are held in trust by the lender who pays the sums as they become due.

Executor
The individual named in a will charged with carrying out the provisions specified in the will. A co-executor serves as executor along with one or more designated individuals.

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