Copy of `Superglossary - Finance`

The wordlist doesn't exist anymore, or, the website doesn't exist anymore. On this page you can find a copy of the original information. The information may have been taken offline because it is outdated.

Superglossary - Finance Category: Economy and Finance > Finance Date & country: 16/12/2013, USA Words: 5410

Earnings Change Percentage
A financial measure defined as revenues less cost of goods sold and selling, general, and administra

Earnings Momentum
The percent increase or decrease in earnings per share from those of the preceding calendar year. Th

Earnings Per Share (EPS)
An increase in the earnings per share growth rate from one reporting period to the next.

Earnings Per Share (EPS)
Net income divided by the number of outstanding shares of common stock and equivalents.

Earnings Retention Ratio
A company's profit divided by its number of outstanding shares. If a company earning $2 million in o

Earnings Stability
Plowback rate.

Earnings Surprises
The complement of the standard deviation of annual earnings from those which would be plotted on rec

Earnings Yield
Positive or negative differences from the consensus forecast of earnings by institutions such as Fir

Eating Stock
Refers to an additional payment in a merger or acquisition that is not part of the original acquisit

EBIT
When an underwriter can't find buyers for a stock and therefore has to buy them for his own account.

EBIT-DA
See earnings before interest and taxes.

Economic Assumptions
See earnings before interest, taxes, depreciation, and amortization.

Economic Dependence
General market environment a firm expects to operate in over the life of a financial plan.

Economic Earnings
When the costs and/or revenues of one project depend on those of another.

Economic Exposure
The real flow of cash that a firm could pay out forever in the absence of any change in the firm's p

Economic Growth Rate
The extent to which the value of a firm will change because of an exchange rate change.

Economic Income
The annual percentage rate of change in the Gross National Product.

Economic Indicators
Cash flow plus change in present value.

Economic Indicators
The key statistics of the economy that reveal the direction the economy is heading in; for example,

Economic Order Quantity (EOQ)
Technical measures that analysts use to forecast events in economic systems; for example, Gross Dome

Economic Profit
The order quantity that minimizes total inventory costs.

Economic Rents
A general term for various technical measures of profit in which adjustments are made to the traditi

Economic Risk
Profits in excess of the competitive level.

Economic Surplus
In project financing, the risk that the project's output will not be salable at a price that will co

Economic Union
For any entity, the difference between the market value of all its assets and the market value of it

Economics
An agreement between two or more countries that allows the free movement of capital, labor, and all

Economies Of Scale
The study of the economy. See also

Economies Of Scope
The decrease in the marginal cost of production as a firm's extent of operations expands.

EDGAR
Scope economies exist whenever the same investment can support multiple profitable activities less e

Edge Corporations
The Securities & Exchange Commission uses Electronic Data Gathering and Retrieval to transmit compan

Education IRA
Specialized banking institutions, authorized and chartered by the Federal Reserve Board of Goverors

Effective Annual Interest Rate
A type of individual retirement account enabling the contribution of up to $500 per year for each ch

Effective Annual Yield
An annual measure of the time value of money that fully reflects the effects of compounding.

Effective Call Price
Annualized interest rate on a security computed using compound interest techniques.

Effective Convexity
The strike price in a market redemption provision plus the accrued interest to the redemption date.

Effective Date
The convexity of a bond calculated using cash flows that change with yields.

Effective Debt
In an interest rate swap, the date the swap begins accruing interest.

Effective Duration
The total debt owed by a firm to its creditors.

Effective Margin (EM)
The duration calculated using the approximate duration formula for a bond with an embedded option, r

Effective Net Worth
Used with SAT performance measures, the amount equal to the net earned spread, or margin of income,

Effective Rate
Net worth plus subordinated debt.

Effective Sale
A measure of the time value of money that fully reflects the effects of compounding.

Effective Spread
A sale based on the most recent round-lot price, which determines the price of the next odd lot. The

Effective Tax Rate
The gross underwriting spread adjusted for the impact that a common stock offering's announcement ha

Efficiency
The net rate a taxpayer pays on income that includes all forms of taxes. It is calculated by dividin

Efficient Capital Market
The degree and speed with which a market accurately incorporates information into prices.

Efficient Diversification
A market in which new information is very quickly reflected accurately in share prices.

Efficient Frontier
The organizing principle of modern portfolio theory, which maintains that any risk-averse investor w

Efficient Market Hypothesis
The combinations of securities portfolios that maximize expected return for any level of expected ri

Efficient Portfolio
States that all relevant information is fully and immediately reflected in a security's market price

Efficient Set
A portfolio that provides the greatest expected return for a given level of risk (i.e., standard dev

Eighth[-Ed]
Graph representing a set of portfolios that maximize expected return at each level of portfolio risk

Either-Or Facility
Used in the context of general equities. A specialist or another broker is bidding higher or offerin

Either-Way Market
An agreement permitting a bank customer to borrow either domestic dollars from the bank's head offic

Elasticity Of An Option
In the interbank Eurodollar deposit market, an either-way market is one in which the bid and offered

Elasticity Of Demand And Supply
Percentage change in the value of an option given a 1% change in the value of the option's underlyin

Elect
The degree of buyers' responsiveness to price changes. Elasticity is measured as the percent change

Electronic Data Interchange (EDI)
The conversion of a conditional order into a market order.

Electronic Depository Transfers
The direct exchange of information electronically, from one firm's computer to another firm's comput

Elephants
The transfer of funds between bank accounts through the Automated Clearing House (ACH) system.

Eleven Bond Index
A term used to refer to large institutional investors.

Eligible Bankers Acceptances
An index based on the average yield of 11 municipal bonds that mature in 20 years and carry an avera

Elliott Wave Theory
In the BA market, an acceptance may be referred to as eligible because it is acceptable by the Fed a

Elves
Technical market timing strategy that predicts price movements on the basis of historical price wave

Embedded Option
A term the host uses to refer to guests on the PBS television show, 'Wall Street Week', who are tech

Emergency Fund
An option that is part of the structure of a bond that gives either the bondholder or the issuer the

Emergency Home Finance Act Of 1970
A reserve of cash kept available to meet the costs of any unexpected financial emergencies.

Emerging Company Marketplace (ECM)
The federal legislation creating the Federal Home Loan Mortgage Corporation, a partially government-

Emerging Markets
A service once offered by the American Stock Exchange to help small growth companies fulfill special

Emerging Markets Free Index (EMF)
The financial markets of developing economies.

Employee Stock Fund
The law that regulates the operation of private pensions and benefit plans.

Empty Head And Pure Heart Test
A company contributes to a trust fund that buys stock on behalf of employees.

Encumbered
Securities and Exchange Commission rule that allows only the bidder of a tender offer to trade in th

End-Of-Year Convention
A property owned by one party on which a second party reserves the right to make a valid claim, e.g.

Endogenous Variable
Treating cash flows as if they occur at the end of a year as opposed to the date convention. Under t

Endorse
A value determined within the context of a model. Related

Endowment
Transfering asset ownership by signing the back of the asset's certificate.

Endowment Funds
Gift of money or property to a specified institution for a specified purpose.

Energy Mutual Fund
Investment funds established for the support of institutions such as colleges, private schools, muse

Enhanced Indexing
Mutual fund investing in energy stocks only, e.g., oil and gas companies.

Enhancement
Also called indexing-plus, an indexing strategy whose objective is to exceed or replicate the total

Enterprise
An innovation that has a positive impact on one or more of a firm's existing products.

Entrepreneur
A business firm.

Environmental Fund
A person starting a new company who takes on the risks associated with starting the enterprise, whic

Equal Dollar Swap
A mutual fund that invests strictly in stocks of companies that are environmentally friendly and/or

Equal Shares Swap
Selling common stock/convertibles in one company and reinvesting the proceeds in as many shares of (

Equalizing Dividend
Applies mainly to convertible securities. Selling the underlying common and reinvesting the proceeds

Equilibrium Market Price Of Risk
Special dividends received by investors of a firm for income the investor lost because the firm alte

Equilibrium Price
The slope of the capital market line (CML). Since the C.M.L. represents the expected return offered

Equilibrium Rate Of Interest
The price when the supply of goods matches demand.

Equipment Leasing Partnership
The interest rate that clears the market. Also called the trade-clearing interest rate.

Equipment Trust Certificates
A limited partnership that receives income and tax benefits such as depreciation costs by purchasing

Equitable Owner
Certificates issued by a trust that is formed to purchase an asset and lease it to a lessee. When th

Equity
The beneficiary of a property held in a trust.

Equity
Ownership interest in a firm. Also, the residual dollar value of a futures trading account, assuming

Equity Cap
Also known as net worth or owners' equity. Equity is the net value of a company's total assets, less

Equity Capital At Beginning Of Year
An agreement in which one party, for an up-front premium, agrees to pay the other at specific time p

Equity Claim
Net worth per share of common shareholder's equity investment (including retained earnings) at corpo

Equity Collar
Also called a residual claim; a claim to a share of earnings after debt obligations have been satisf

Equity Contribution Agreement
The simultaneous purchase of an equity floor and sale of an equity cap.