equity swap

Definition

A swap for which payments on one or both sides are linked to the performance of equities or an equity index. Sometimes used to avoid withholding taxes, obtain leverage, or enjoy the returns from ownership without actually owning equity.

Use equity swap in a sentence

You may want to try and get an equity swap if you think that it will end up being profitable for you.

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During this equity swap, neither party may make any sales that would compromise the accuracy of data collected in the next twelve months.

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They completed the equity swap as a means to create a tax shield. They thought it was a good way to reap the rewards from owning, without owning.

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equity style box Delta One