A swap (derivative contract) in which a set of future cash flows are agreed to be exchanged between two counterparties at set dates in the future and at least one of the two legs is the cash flow from performance of equity instrument like a stock (usually called equity leg). (For example, the counterparties to an equity swap may agree to exchange the dividends from two stocks of roughly the same value). Alternatively, they may exchange the capital gains from a stock for an interest rate (floating leg) calculated over a nominal value. Equity swaps may take a variety of forms, but all exist in order to diversify the cash flows of the parties without requiring them to buy anything new.