Equity Funding Corporation of America
Equity Funding Corporation of America’s principal line of business was creative financial investments, which included the sale of life insurance and programs that combined life insurance policies with mutual fund investment. Equity Funding derived its income from the commissions on such sales. ... The mutual fund shares were then used by the participants to secure a one-year note for a loan made by Equity Funding equal to the amount of the premium on the insurance policy. ... During that same period the company’s revenues and earnings increased dramatically, along with the price of Equity Funding common stock.