Letter E Dictionary

each way

Terms used in trading, referring to fees on both purchases and sales.

EAFE Index

Abbreviation for the Europe, Australia, and Far East Index from Morgan Stanley Capital International.

early exercise

When an option or other financial security is exercised before the due date or expiration.

early retirement

A retirement plan provision which allows an employee to retire before the firm’s official retirement age.

early withdrawal penalty

A fee charged on fixed-term assets if money is withdrawn before a preset maturity date.

earned benefit

A benefit contingent on how long an employee has worked for an employer.

earned income

Compensation from participation in a business, including wages, salary, tips, commissions and bonuses.

earned income tax credit

A relief from the Social Security tax for working, low-income individuals.

earned surplus

Earnings not paid out as dividends but instead reinvested in the core business or used to pay off debt.

earning asset

An asset which provides income.

earnings

Calculated by the following: Total Revenues minus cost of sales, operating expenses, and taxes, over a given period of time.

Earnings Before Interest and Taxes

Abbreviated as EBIT.

Earnings Before Interest, Taxes, Depreciation, Amortization and Rent

EBITDAR. An approximate measure of a company’s operating cash flow based on data from the company’s income statement.

Earnings Before Interest, Taxes, Depreciation and Amortization

EBITDA. An approximate measure of a company’s operating cash flow based on data from the company’s income statement.

earnings credit rate

The rate used by banks to determine the allowable credit they will provide for the use of a customer’s balances on deposit with them.

earnings estimate

The expected quarterly or annual earnings of a given firm, as estimated by an analyst or other market individual or firm.

earnings growth

A measure of growth in a firm’s net income over a specific period, often one year.

earnings multiple

The most common measure of how expensive a stock is.

earnings multiplier

A firm’s estimated P/E ratio, adjusted for the current level of interest rates; used for purposes of valuation

Earnings per Share

Abbreviated as EPS, refers to the Total earnings divided by the number of shares outstanding.

Fed funds rate

Federal Funds Rate (or Fed Funds Rate) – the interest rate banks charge other banks to borrow money.

earnings report

An official quarterly or annual financial document published by a public firm, showing earnings, expenses, and net profit.

earnings surprise

An earnings report that differs from the consensus forecast, i.e. what analysts were expecting

earnings yield

In equities, earnings yield refers to the return dividends earn on a share, expressed as a percentage.

earnout

An arrangement in which sellers of a business receive additional future payment, generally based on future earnings.

earnup

An arrangement in which an acquirer of a firm provides financial incentives to the existing management to encourage strong future performance.

easement

A right, giving individuals other than the owner permission to use a property for a specific purpose.

East Caribbean Dollar

The official currency of East Caribbean.

East Timor Dollar

The currency of East Timor.

easy monetary policy

A central bank policy designed to stimulate economic growth by lowering short term interest rates, making money less expensive to borrow.

eating stock

The act of an underwriter of purchasing his or her own stock when he cannot find enough buyers.

EBIDTA

Abbreviation for Earnings Before Interest, Taxes, Depreciation and Amortization,…..

EBIT

Abbreviation for Earnings Before Interest and Taxes, …………..

EBITDA

Abbreviation for Earnings Before Interest, Taxes, Depreciation and Amortization………….

EBITDA margin

Equal to EBITDA divided by total revenue.

EBITDAR

Abbreviation for Earnings Before Interest….

ECB

European Central Bank (ECB).

ECB Chief Economist Speaks – Euro-zone

As Chief Economist and member of the Executive Board for the European Central Bank,…..

ECB Governor Speaks – Euro-zone

As a member of the European Central Bank Governing Council,….

ECB President Speaks – Euro Zone

The European Central Bank is the central bank of the European Monetary Union member states.

ECB Rate Announcement and Press Conference – Euro-zone

The European Central Bank’s decision to increase, decrease, or maintain interest rates.

ECI

Abbreviation for Employer Cost Index.

ECN

Abbreviation for Electronic Communication Network

e-commerce

The purchasing and selling of products and services by businesses and consumers over the internet.

econometrics

The application of statistical and mathematical methods in the……

economic

Economics is the basically the study of how supply and demand impact scarce product and services.

economic base

The firms that provide jobs in a given community or geographic location.

Economic Calendar User Guide

prepares traders for the most important economic news events for the major currencies.

economic cycle

The predictable long-term pattern changes in national income.

Economic Data Release Schedule – United States

The most important US economic reports are released by the US Government at 8:30 am Eastern time throughout the month and year.

Economic Indicators for the United States

There are thousands of different reports released in the US relevant to the Foreign….

Economic Indicators for the United Kingdom

Overview – There are thousands of economic reports released in the United Kingdom.

economic growth

A positive change in the level of production of goods and services by a country over…..

economic growth rate

The pace at which economic growth increases during a given interval…

economic indicator

Any kind of statistical data showing general trends in the economy.

Economic Order Quantity

Abbreviated as EOQ, refers to the amount of orders that minimizes…..

economic rent

The rent a real estate property would generate if leased.

Economic Indicators for Australia

Overview – There are thousands of economic reports released from Australia.

Economic Indicators for New Zealand

Overview – There are thousands of economic reports released from New Zealand.

Economic Indicators for Switzerland

Overview – There are thousands of economic reports released from Switzerland.

Economic Indicators from Canada

Overview – There are thousands of economic reports released from Canada.

Economic Indicators from Japan

Overview – There are thousands of different reports released in Japan relevant to the Foreign Exchange Market.

Euro-Zone Economic Indicators

Overview – There are thousands of economic indicators released in….

economic risk

In financing a project, the risk that the project’s output will……………..

economics

Economics is the basically the study of how supply and demand impact….

economic sanctions

Restrictions upon international trade and financial…..

economic surplus

Economic Surplus is the overall benefit a society composed of consumers and producers….

economic value

The value of an asset deriving from its ability to generate income.

economic value added

Abbreviated as EVA, refers to the monetary value of an entity…

economist

An individual who works in the field of economics.

economy

Activities pertaining to the production and distribution of….

economy of scale

Reduction in cost per unit resulting from increased production……..

economy of scope

The situation that arises when the cost of performing….

Eco Watchers Survey – Japan

The Economy Watchers Survey asks business-cycle sensitive…

ECS

The former currency of the Ecuador.

ECU

Abbreviation for European Currency Unit, which is…

Ecuadorean Sucre

The former currency of the Ecuador.

EDGAR

Abbreviation for Electronic Data Gathering…

Edge Act

Banking legislation allowing National Banks to perform foreign….

education credit

A tax credit available for education expenses….

Education IRA

The name for a tax-deferred investment vehicle….

EEK

The ISO currency code for the Estonian Kroon.

effective age

e Edge Act edict education credit Education IRA EEK effective age effective annual interest rate effective date effective debt effective duration effective net worth An appraiser’s estimate of the physical condition of a building, in years.

effective annual interest rate

The actual annual interest rate that accrues, after taking ….

effective date

The date on which an agreement, such as a contract or insurance policy, takes effect.

effective debt

e Education IRA EEK effective age effective annual interest rate effective date effective debt effective duration effective net worth effective par effective rate effective tax rate The net total of outstanding debt owed by a firm or individual. Effective debt will include standard forms of debt such as loans and bond issues, as well as [...]

effective duration

The duration for a bond with an embedded option when the value …

effective net worth

The value of shareholder’s equity in a firm …

effective par

The par value for preferred stock that would ordinarily correspond to a given dividend rate.

effective rate

The yield on a debt as calculated from the purchase price.

effective tax rate

The actual income tax paid divided by net taxable income before taxes….

efficiency

The degree to which a market allows for price to reflect all available….

efficiency ratio

The total operating expenses divided by fee income plus tax equivalent net interest income.

efficient frontier

The efficient frontier graph correlates a portfolio’s risk profile to possible returns. The curve….

Efficient Market Theory

The theory that all market participants receive and act on all of the…..

efficient portfolio

A portfolio that provides the greatest expected return …..

EFT

Abbreviation for Electronic Funds Transfer…..

EGP

The ISO currency code for the Egyptian Pound…..

Egyptian Pound

The official currency of Egypt…..

either-or order

Two orders given to a broker, for which the execution of…..

EIA Crude Oil Stocks – United States

Measure of inventories of crude oil stored for future use….

elastic

See elasticity…….

elasticity

The degree to which a price change for a good or service ….

elective deferral

An employer’s contribution towards an employee’s….

electronic commerce

The purchasing and selling of products and services ….

Electronic Communication Network

Abbreviated as ECN, refers to

Electronic Data Gathering, Analysis, and Retrieval

EDGAR. The SEC’s system used by all public companies to…..

Electronic Funds Transfer

Abbreviated as EFT, refers to any

electronic wallet

An encrypted storage medium holding credit card….

elephant

Informal for a large institutional investor such….

elevator pitch

An entrepreneur’s one-minute explanation….

eligibility requirements

In insurance, qualifications required by an…..

eligible accounts

Accounts receivable that satisfy the…..

eligible list

List of securities that a financial firm …..

Elliott Wave Theory

A technical analysis technique published by Ralph Elliott…

El Salvador Colon

The official currency of El Salvador…..

elves

e elevator pitch eligibility requirements eligible accounts eligible list Elliott Wave Theory elves embargo embedded option embezzle emerging market Eminent Domain How the host of PBS’s “”Wall Street Week”” refers to the show’s ten technical analysts, whose collective bearishness or bullishness is taken by some investors as an indication of overall market sentiment.

embargo

A government prohibition against the shipment of certain…..

embedded option

An option that is a structured part of another instrument…..

embezzle

To fraudulently appropriate an asset for one’s own use.

emerging market

A financial market of a developing country…..

Eminent Domain

Eminent Domain refers to the right one government has to seize private….

e-mini

A futures contract that can be traded electronically

Emperor’s Birthday – Japan

The Emperor’s Birthday on December 23 is a…..

Empire State Manufacturing Survey – United States

Survey assessing business conditions and expectations of manufacturing …..

employee

An individual who is hired to provide services to a firm on a …..

employee contribution

An individual’s contribution to his or her own…

Employee Retirement Income Security Act of 1974

Abbreviated as ERISA, refers to the federal law

Employee Stock Ownership Plan

Abbreviated as ESOP, refers to a trust established by

Employee Stock Purchase Plan

Abbreviated as ESPP, refers to a program that

employee stock repurchase agreement

Abbreviated as ESPP, refers to a program…..

Employer Cost Index

Abbreviated as ECI, refers to a quarterly report from ….

employer matching contribution

The amount, if any, that a firm contributes to its …..

Employment Change – Australia

Tracks the number of employed in Australia .

Employment Change – Germany – Euro-zone

Measures the change in the number of employed individuals…..

Employment Cost Index

Abbreviated as ECI, refers to a quarterly…..

Employment Level – Switzerland

The number of paid employees working at least…..

Employment Reports By Country

Overview – Employment Reports track trends in the labor market.

Employment Situation-Japan

Employment Situation – Japan – The analysis of…..

Employment – (Non Farm Payrolls and Unemployment Rate) United States

ne of the most widely anticipated reports on the US economic calendar…..

encroachment

A structure, or part of a structure, built on another individual’s property.

encumbered

Owned by one but another entity has a valid claim on the property or security.

endorsement

A signature used to legally transfer a negotiable instrument.

endowment

Assets, property or funds bestowed upon an individual or institution for a specific purpose.

endowment insurance

A type of life insurance that is payable to the insured if he/she is still living…

enhanced index fund

A fund that aims to track an index, but also attempts to….

enrolled agent

A tax law specialist who passes a Treasury Department tax exam in ….

ensure

To make certain.

enterprise

Business or venture.

Enterprise Resource Planning

Abbreviated as ERP, refers to an amalgamation of

enterprise value

A measure of what the market believes a firm’s ongoing operations are worth.

enterprise zone

A designated geographical area in which businesses enjoy ….

entitlements

Benefits guaranteed to an individual, such as dividends for shareholders…..

entity

Thing; something in existence.

entrepreneur

An individual who starts his or her own business.

entrepreneurship

The assumption of risk and responsibility in designing and implementing a…….

entry barrier

see barriers to entry

entry order

An Entry Order is an order to enter the market at a specified price.

environmental fund

A mutual fund which invests exclusively or predominantly in firms which are actively….

EOQ

Abbreviation for Economic Order Quantity, which is the amount

EPS

Abbreviation for Earnings per Share, which is the total

epsilon

Technical analysis term equal to the average daily price change divided ….

Equal Credit Opportunity Act

A federal law prohibiting lenders from discriminating….

Equatorial Guinea

The currency of Equatorial Guinea.

equilibrium

Balance, for example when demand equals supply.

equilibrium price

The market price at which the supply of an item equals the quantity demanded.

Equipment Investment – Germany – Euro-zone

Measures the total value of German investments in equipment including…..

equitable owner

Beneficiary of a property being held in a trust.

equities

An instrument that signifies an ownership position, or equity, in a corporation…..

equity

Equity has a variety of meanings in the financial world.

equity capital

Capital raised from owners.

equity financing

Financing by selling common stock or preferred stock to investors.

equity fund

A mutual fund which invests primarily in stocks, generally common stocks.

equity funding

An investment which combines mutual fund shares and a life insurance policy.

equity-indexed annuity

Annuity whose interest payments are tied to the performance…..

equity kicker

A simple ‘kicker’ is a right, warrant or other incentive …..

equity-linked note

A debt instrument whose return on investment is tied to the equity markets….

equity market

see stock market.

equity method

An accounting method used to determine income derived from …..

equity mortgage

A mortgage in which a lender offers a favorable interest…….

equity multiplier

Total assets divided by common stockholder’s equity. ……

equity option

An option in which the underlier is the common stock of a corporation…….

equity REIT

A REIT which takes an ownership position in its real……….

equity risk premium

The return that an individual stock or ……

equity securities

see equity.

equity security

An instrument that signifies an ownership position (called equity) in a corporation…….

equity swap

A swap for which payments on one or both sides are linked to……

equity turnover

A firm’s annual sales divided by its average stockholders’ equity…….

equity value

see equity….

equivalent taxable yield

The yield needed on a taxable investment in order to…..

ERISA

Abbreviation for Employee Retirement Income…….

Eritrean Nakfa

The official currency of Eritrea……..

ERN

The ISO currency code for the Eritrean Nakfa……

erosion

When an innovation or technological breakthrough reduces……..

ERP

Abbreviation for Enterprise Resource Planning….

ESA

Abbreviation for Coverdell Education……

escalation clause

A provision of a contract which calls for an increase….

escalator clause

A provision of a contract which calls for an increase in price

escheatment

The process of turning over unclaimed or abandoned …….

escrow

Documents, real estate, money, or securities ……

escrow account

A trust account held in the borrower’s name…..

escrowed to maturity

The holding of proceeds from a new bond issue in an escrow account………..

escrow receipt

A certificate which guarantees that the securities underlying ……….

ESOP

Abbreviation for Employee Stock Ownership Plan…..

ESP

The ISO currency code for the Balearic Is Peseta…..

ESPP

Abbreviation for Employee Stock Purchase Plan,

estate

All assets owned by an individual at death….

estate planning

The preparation of a plan of administration and disposition……..

estate tax

Tax imposed on the transfer of property from a deceased to his or her heirs……

estimated tax

Estimated amount in taxes due to be paid in the coming year…….

Estonian Kroon

The official currency of Estonia….

ETB

The ISO currency code for the Ethiopian Birr…

ETF

Abbreviation for Exchange Traded Fund………..

ethical investing

The act of investing in firms that operate ethically……

Ethiopian Birr

he official currency of Ethiopia.

EU

Abbreviation for the European Union……

EU Finance Ministers – Euro-zone

Meet monthly to discuss the current economic status of……..

EUR

The ISO currency code for the Euro-zone Euro

Euro

The name for the composite monetary unit …….

Eurobond

A type of bond issued and traded outside the country…

Euroclear

One of the leading clearing systems for eurobonds.

Eurocommercial paper

The commercial paper issued in a Eurocurrency.

Eurocredit

Lending done using Eurocurrency.

Eurocurrency

The currency deposited by firms and federal governments ……

Eurodollar

An American dollar held by a foreign institution outside the U.S.

Eurodollar bond

A Eurobond denominated in U.S. dollars.

Eurodollar certificate of deposit

A certificate of deposit that is issued by a bank outside the U.S.

Euroequity issues

Securities sold in several national markets ……

European Central Bank

European Central Bank (ECB). The central bank empowered …..

European Community

Economic and political alliance designed to foster ……

European Currency Unit

Abbreviated as ECU, which refers to a composite

European Depositary Receipt

Abbreviated as EDR, refers to a negotiable…

European Monetary System

The system established to encourage monetary stability in Europe…

European-style option

An option which can only be exercised for a short……….

European terms

In quoting foreign exchange rates, European ……

European Union

Abbreviated as EU, refers to the economic association

Euroyen

Refers to Japanese yen traded in the Eurocurrency markets.

Euroyen bond

Eurobond denominated in Japanese yen.

Eurozone

The collective group of countries which use the Euro as their common currency.

Euro-zone CPI Flash Estimate – Euro-zone

An early estimate of Euro-zone inflation…….

EVA

Abbreviation for Economic Value Added, which refers ….

evaluator

An individual qualified by education, training, and experience ….

even lot

The normal unit of trading of a security….

even spread

In derivatives trading, an Even Spread is a …..

event risk

The probability that the rating of a bond will drop due to an event…..

even up

The elimination or reduction of a current long or…..

evergreen loan

An Evergreen Loan is a loan that is continuously ….

eviction

The lawful expulsion of an occupant from a property.

exact interest

The interest as calculated on a 365-day-a-year basis…..

ex-all

The sale of a security without any associated privileges

exante return

The expected return of a portfolio, calculated from …..

except-for opinion

An auditor’s opinion in which he/she is unable to audit certain…..

exceptional item

The costs that alter a firm’s earnings during a given…..

excess accumulation

The amount of a required minimum distribution that an IRA …..

excess contribution

The amount by which an IRA contribution exceeds the……

excess distribution

The amount of a retirement payment exceeding the allowable limits, on which a penalty is applied.

excess insurance

A type of insurance which applies to that portion ….

excess profits tax

Additional taxes levied on business income in times….

excess reserves

The amount held by a bank above the reserve requirement.

excess returns

The returns in excess of those required by some asset…

exchange

Any organization, association or group…..

exchangeable security

A security that grants the holder the right to exchange…..

exchange against actuals

The exchange of a specified quantity of a cash commodity …

exchange distribution

A trade on the exchange floor of a block of shares representing….

exchange for futures

The transfer of a cash commodity of a long futures position …

exchange for physical

The exchange of a specified quantity of a cash commodity for an…

exchange fund

An investment which enables individuals who have significant….

exchange of spot

The exchange of a specified quantity of a cash commodity…..

exchange privilege

A feature offered by some mutual fund families in which…..

exchange rate

The rate at which one currency may be converted into another.

exchange rate risk

The risk that a business’ operations or an investment’s…….

exchange ratio

The number of shares of the acquiring firm that a shareholder…..

exchange seat

The membership on an exchange, a requirement for transacting..

Exchange Traded Fund

Abbreviated as ETF, refers to a fund that tracks an index, but can…..

exchange-traded option

An option authorized by an exchange for trading. Also known as listed option.

exchange versus cash

The exchange of a specified quantity of a cash commodity for an ….

excise tax

A Federal or state tax imposed on the manufacture and distribution of c

excluded risk

A specific circumstance under which a given life insurance policy…..

exclusion

A loss or risk that a policy does not cover.

exclusion ratio

The amount of an annuity payment that is not subject to income tax…..

exclusive

Having the sole right to do something.

exclusive listing

A written contract in which a licensed real estate agent….

ex-date

In the context of stock splits, the date that the share price changes to reflect the split….

ex-dividend

A security which no longer carries the right to the most …..

ex-dividend date

The first day of the ex-dividend period.

execution

The completion of an order to buy or sell securities.

Execution Risk

In processing a securities transaction……

executive indemnity insurance

Insurance policy that protects a portion of …

executor

An individual or institution nominated in a will………

exempt

Not subject to taxation. More generally, to be free of restrictions or rules.

exemption

A direct reduction taken from taxable income for a……

exempt security

A security which is not subject to certain SEC

exercise

To implement the rights of an option….

exercise assignment

The receipt of an exercise assignment notice by an option writer ….

exercise limit

A restriction on the number of option contracts of a single………

exercise notice

The receipt of an exercise notice by an option writer……

exercise price

e exemption exercise exercise assignment exercise limit exercise notice exercise price exercise ratio exhaust price eximbank Existing Home Sales – United States exit The specified price on an option contract at which the contract may be exercised, whereby a call option buyer can buy the underlier or a put option buyer can sell the underlier. [...]

exercise ratio

The number of shares of common stock ….

exhaust price

The price at which a client’s position in a stock……

eximbank

Export-Import Bank.

Existing Home Sales – United States

Records sales of previously owned homes in the United States .

exit

The way in which an investor closes out a specific position, generally by converting it to cash.

exit fee

A sales charge or commission paid when an individual…..

exit strategy

The way in which an investor plans to close out an investment.

ex-legal

Class of municipal bond that does not have a legal opinion from a bond …

expansion

Growth, business expansion or economic recovery.

expected family contribution

A calculation representing the amount of money …….

expected return

An estimation of the value of an investment……

expenditure

A payment, or the promise of a future payment….

expense

Any cost of doing business resulting from revenue-generating activities.

expensed

Having the characteristic of being charged to an expense account….

expense ratio

For a mutual fund, operating costs, including management …..

experience rating

A quantitative measure used by an insurance firm to …

expiration

Termination, end.

expiration cycle

The Expiration Cycle is a recurring cycle of…..

expiration date

The date on which an option, right or warrant expires…

expiration time

The time of day at which an option expires on the expiration date.

expire

To end.

ex-pit transaction

A commodities transaction which occurs away from the floor …..

explicit interest

The amount of money paid on a loan.

exponential moving average

A moving average calculated by weighting recent values more heavily than older values…

export

It is one of the two components of a country’s trade balance….

Export-Import Bank

A independent bank, established by Congress, which encourages U.S…

export license

A document indicating that a government has granted a….

Export Price Index (EPI) – Japan

The Export Price Index tracks changes in the prices …

Export Price Index – United States

Tracks price changes of U.S. export goods.

Exports – Australia

Goods and services produced domestically that ….

Exports – Germany – Euro-zone

Goods and services produced domestically ….

exposure

The condition of being subjected to a source of risk.

express agreement

A contract, either oral or written, which contains the intentions of the involved parties in words.

ex-rights

The purchase of stock without the right to purchase additional shares at a price below the current market price.

ex-rights date

The date on which the buyer of common stock is no longer entitled to rights that had been declared.

ex-stock dividends

A security which no longer carries the right to the most recently declared dividend…

extended broad money

One measure of the money supply that includes M2, plus large time deposits….

extendible note

Note whose maturity can be lengthened at the option of the issuer…

extension

The granting of additional time, as in a contract or the filing of a tax return.

extension swap

A swap in which an investor extends the maturity of his investment….

external financing

External financing is the issuance of debt or equity in..

external funds

The funds brought in from outside the firm, such as through a bond or equity offering.

externality

The side effect on an individual or entity due to the actions of another individual or entity.

external market

Sometimes referred to as the Euromarket, the external …

extraordinary item

In financial accounting, and extraordinary …………

extrapolation

Extrapolation is the prediction of values …….

ex-warrants

The stock for which a buyer would not be entitled to the attached warrants.