The e-CBOT is an automated trading platform for trading futures on the Chicago Board of Trade (CBOT). The CBOT is a commodities futures and commodities options exchange. Several dozen types of cont...

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An e-meeting is simply an electronic meeting. Let’s say John Doe is working with 15 people on a project. Many of the people are in other states, but John Doe needs to get them all in ...

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E-micro forex futures are currency futures contracts that are a 10th the size of a standard futures contract.  Forex futures are financial contracts giving the buyer an obligation to purchase ...

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An E-mini is a stock index futures contract that is electronically traded on the Chicago Mercantile Exchange (CME) and is 1/5 the size of a standard stock index futures contract.An E-mini S&P 500 ...

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Each way refers to a broker's act of earning a commission from both the buyer and the seller in a transaction. Let's say John Doe is a broker for XYZ brokerage. He has a client, Jeff Smith, w...

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EAFE stands for Europe, Australasia, and the Far East -- a region that is considered the most developed outside of North America. The Morgan Stanley Capital International (MSCI) EAFE index is the most...

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An early adopter is a person who purchases or tries new products -- typically technology -- before most other consumers.Early adopters are one of five types of consumers (the others are innovators, ea...

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Early amortization refers to the accelerated repayment of bond principal, generally for an asset-backed security (ABS).Early amortization is also referred to as payout events or early calls. Early ...

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An early call refers to the accelerated repayment of bond principal, normally on an asset-backed security (ABS). An early call is also known as early amortization or a "payout event." An earl...

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Early exercise refers to a situation in which an option holder has the right to exercise or assign an option before its expiration date. The option holder may decide to exercise the option before it ...

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The early majority is a group of people who purchase or try new products -- typically technology -- after a much smaller population of innovators and early adopters have done so.The early majority is ...

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Early withdrawal refers to a depositor's or investor's withdrawal of funds from an account before the agreed-upon withdrawal date. Early withdrawals usually incur penalties.Individual retireme...

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Earmarking refers to the act of setting aside funds for special purposes or specific projects. Companies and governments earmark funds frequently. Note: Earmarking may also be referred to as pork b...

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Earned income is an IRS term for income that is obtained by participating in a business or trade. Earned income typically includes salaries and bonuses, wages, commissions and tips. Union strike benef...

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The earned income tax credit (EIC) is a tax credit for low-income workers. Earned income is an IRS term for income obtained by participating in a business or trade -- typically, this means salari...

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An earned premium is the portion of an insurance premium that applies to the expired portion of an insurance policy. For an earned premium example, let's say John purchases a life insurance policy fr...

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Earned surplus is the sum of a company's profits, after dividend payments, since the company's inception. It can also be called retained earnings, retained capital, or accumulated earnings.Let...

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Earnest money is a good faith deposit, typically on a house purchase. It is not the same as a down payment. For example, let's assume John wants to buy a home that is listed for $500,000. T...

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Earning assets are assets that generate income like interest or dividends.Typically, earning assets require very little ongoing work from the owner of the assets. Interest-bearing accounts, CDs, divid...

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Earning potential often refers to the top salary for a particular field or profession. In the finance world, the meaning is not much different: earning potential is the biggest profit a company could ...

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Earnings are the corporate profits of a company over a specific time period after taxes and other expenses have been paid.The net (after-tax) earnings of a company are calculated by deducting such fac...

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The earnings allowance is the minimum amount a bank requires a customer to have available in a checking account in order to avoid monthly service charges.Let's say Company XYZ has a cash account w...

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An earnings announcement is a public statement of a company's profits, usually on a quarterly basis.For example, let's say Company XYZ is a public company. As such, it must file a 10-Q every q...

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Earnings before interest after taxes (EBIAT) is a measure of a company's operating performance. EBIAT is a measure of how profitable a company would be if it paid taxes on its operating profit wit...

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Earnings before interest and depreciation (EBID) are a post-tax measure of a company's operating performance. The formula for EBID is: EBID = EBIT + Depreciation - Taxes EBID can be e...

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Earnings Before Interest and Taxes (EBIT) measures the profitability of a company without taking into account its cost of capital or tax implications. EBIT is calculated using information p...

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Earnings before interest, tax, depreciation, and amortization (EBITDA) is a measure of a company's operating performance. It's a way to evaluate a company's performance without having to factor in...

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Earnings before tax (EBT) measures a company's operating and non-operating profits before taxes are considered. It is the same as profit before taxes. Simplifying things a bit, revenue minu...

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An earnings call is a public announcement, usually via conference call, of a company's profits, usually on a quarterly basis. Company XYZ is a public company. As such, it must file a 10Q every qua...

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An earnings credit rate (ECR) is a discount a bank gives a depositor on the depositor's bank fees. Let's say Company XYZ has $950,000 in combined deposits with Bank ABC. Bank ABC normally cha...

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An earnings estimate is an estimate of a company's future quarterly or annual profits by a market analyst.Earnings estimates are created by analysts who work for investment research companies. ...

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Earnings momentum is a term to describe accelerating or slowing growth in earnings per share (EPS).   Let's assume that Company XYZ has reported the following EPS: Q1: $0.25 Q2: $0.27 Q...

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The earnings multiplier, also called the price-to-earnings ratio (P/E), is a valuation method used to compare a company’s current share price to its per-share earnings. The market value per sha...

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The term earnings per share (EPS) represents the portion of a company's earnings, net of taxes and preferred stock dividends, that is allocated to each share of common stock. The figure can be calcula...

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Earnings power is the ability to generate profits. Company XYZ is a start-up that sells pet rocks. At first, the company sells 40,000 units after a celebrity is photographed taking hers to ...

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An earnings restatement, also called an earnings recast, is the act of disclosing amended financial statements. Let's assume Company XYZ sells its pharmaceutical division to Company ABC. The pharmace...

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Earnings season refers to the four times per year when most public companies announce their quarterly and/or annual earnings.Although there are no official dates, earnings seasons usually last about a...

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An earnings surprise in an unexpected difference between a company's actual earnings per share and analysts' expected earnings per share. Let's assume that analysts expect Company XYZ to report $0.05...

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The earnings yield is the ratio of a company's last twelve months (LTM) of earnings per share (EPS) to its stock price. It is the inverse of the price-to-earnings (P/E) ratio.The formula for earni...

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An earnout is an agreement between the buyer and seller of a business whereby the buyer agrees to pay the seller additional money based on the performance of the business. Let's say Jane Smith buy...

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An easement is a legal right to trespass.   Let's say John Doe owns five acres of land. He retires and decides that he doesn't want to keep paying property taxes on the full parcel. H...

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An easement in gross is a legal right to use another person's land for as long as the owner owns that land or the holder of the easement dies. Let's say John Doe owns five acres of land, which...

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Easy money is a phrase that often refers to the presence of low interest rates. In the context of the Federal Reserve, easy money is a method of helping the economy expand by increasing the money supp...

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An easy-to-borrow list is a brokerage firm's list of securities that are available for shorting.   Short selling involves a three-step trading strategy that seeks to capitalize on an anticip...

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The phrase "eat well, sleep well" refers to the risk-return trade-off that most investors must make. When investors decide which securities to buy, they also make a decision about the risk th...

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The term "eat your own dog food" means a company uses its own products and services. Let's say Company XYZ manufactures laptop computers. It eats its own dog food by making everyone who w...

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Eating someone's lunch is a business strategy where a company gains market share by aggressively taking it away from a competing company.Eating someone's lunch can be carried out in a number o...

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Eating stock occurs when a broker/dealer or market maker has to purchase stock because there are not enough buyers. Let's say Company XYZ is an investment bank that is underwriting the initial pu...

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Earnings before Interest, Depreciation, and Amortization (EBIDA) is a post-tax measure of a company's operating performance. The formula for EBIDA is: EBIDA = EBIT + Depreciation + ...

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Earnings before interest, tax and depreciation (EBITD) is a pre-tax measure of a company's operating performance. Essentially, it's a way to evaluate a company's performance without having to fact...

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EBITDA margin is a measurement of a company's EBITDA (its earnings before interest, taxes, depreciation, and amortization) as a percentage of its total revenue.   The formula for EBIT...

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Earnings before interest, taxes, depreciation, amortization and exceptional items (EBITDAE) are a measure of a company's operating performance. The formula for EBITDAE is: EBITDAE = EBIT...

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Earnings before interest, taxes, depreciation, amortization, and special losses (EBITDAL) is a measure of a company's operating performance. Essentially, it's a way to evaluate a company's perform...

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EBITDAR, which stands for earnings before interest, tax, depreciation, and either restructuring or rent costs (depending on what you're measuring) measures a company's profitability without t...

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A variation of EBITDA, EBITDAX is a measure used by natural resource exploration companies to reflect ongoing or core profitability. The acronym stands for earnings before interest, taxes, depreci...

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An ECN broker is a person who uses electronic communications networks to give clients access to buyers and sellers in the currency markets. An ECN broker is sort of like a market maker for currency m...

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Econometricians are economists who use math and statistics to measure economic data. Econometricians measure things such as gross domestic product, inflation, or to predict changes in the economy. Th...

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Econometrics is the use of math and statistics to measure economic data. Econometricians use econometrics to measure things such as gross domestic product, inflation, or to predict changes in the eco...

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Economic blight occurs when an area of a town shows visible signs of age, disrepair, and crime. For many people, thinking about the "bad side of town" is to think about economic blight. Often...

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Economic exposure is the risk that a company's cash flow, foreign investments, and earnings may suffer as a result of fluctuating foreign currency exchange rates.The extent to which a company may ...

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An economic indicator is an index or other data that suggests whether the economy is expanding or contracting. For example, the U.S. Department of Commerce reports the amount of new factory orders ev...

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An economic moat is a competitive advantage that is difficult to copy or emulate, thereby creating a barrier to competition from other firms. Common economic moats include patents, brand identity, tec...

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Economic profit is a measure of performance that compares net operating profit to total cost of capital Economic profit is also referred to as economic value added (EVA), which is a tradema...

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An economic recovery is a period of economic expansion, typically after a recession. Let's assume that there has been a significant decline in industrial production, employment, and wholesale or ...

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An economic refugee is a person who moves to another country in search of a higher standard of living. Let's say John Doe lives in Cyprus. The country is undergoing tremendous economic upheaval: ...

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Economic rent is the minimum amount of money that an owner of land, labor or capital must receive in order to let someone else use that land, labor or capital. For example, your economic rent is the ...

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Economic risk is the chance that macroeconomic conditions like exchange rates, government regulation, or political stability will affect an investment, usually one in a foreign country.For example, le...

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An economic stimulus occurs when a federal government attempts to use targeted monetary or fiscal policies to stimulate an economy (especially when it enters a recession or depression). Som...

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An economic tsunami is a set of circumstances that produce an event that triggers considerable distress in the financial markets and/or the economy. In the meteorology world, a tsunami is a wave or s...

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Economic value added (EVA) is an internal management performance measure that compares net operating profit to total cost of capital. Stern Stewart & Co. is credited with devising this trademarked...

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Economics is the academic study of the production, distribution, and consumption of goods and services.Economics can be broken down into two main disciplines: macroeconomics and microeconomics. Macroe...

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Economies of scale is a term that refers to the reduction of per-unit costs through an increase in production volume. This idea is also referred to as diminishing marginal cost.Let's assume that i...

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Economies of scope is a term that refers to the reduction of per-unit costs through the production of a wider variety of goods or services. Let's assume Company XYZ strictly manufactures va...

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An economist is a social scientist devoted to the study of the relationship between human behavior and supply and demand. The study of economics is generally divided into two areas: microeconomics an...

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In its broadest sense, the economy is the organized system of human activity involved in the production, consumption, exchange, and distribution of goods and services. Derived from the Greek wor...

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The EDGAR Public Dissemination Service (PDS) System is an electronic system that receives SEC filings. Keane Federal Systems operates the EDGAR Public Dissemination Service (PDS) System. Su...

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An education credit is a tax credit associated with the payment of education expenses during the tax year. Currently, there are three major education credits in the United States (amounts subject to ...

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An education IRA, now more formally known as a Coverdell Education Savings Account (or Coverdell ESA), is a tax-advantaged savings account intended to help parents and guardians prepare for the expens...

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The educator expenses deduction is an IRS deduction that allows teachers to exclude out-of-pocket teaching expenses from income. In order to qualify for the educator expenses deduction, a person must...

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EE Bonds are one of two types of savings bond sold by the U.S. Treasury (the other is I Bonds). EE Bonds are zero-coupon bonds in that they earn interest monthly but do not pay that interes...

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The effective annual interest rate is the rate of interest an investor earns in a year after accounting for the effects of compounding. The formula for effective annual interest rate is:(1 + i / ...

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Effective duration is a calculation used to approximate the actual, modified duration of a callable bond. It takes into account that future interest rate changes will affect the expected cash flows fo...

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The effective tax rate is the average rate at which an individual is taxed on earned income, or the average rate at which a corporation is taxed on pre-tax profits.The formulas for effective tax rate ...

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For bonds, effective yield is an annual rate of return associated with a periodic interest rate.The formula for effective yield is: [1 + (i/n)]n - 1 Where:i = the nominal rate n = the number of...

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An efficiency ratio is a measure of a bank's overhead as a percentage of its revenue.The formula varies, but the most common one is: Efficiency Ratio = Expenses* / Revenue *not including int...

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Different combinations of securities produce different levels of return. The efficient frontier represents the best of these securities combinations -- those that produce the maximum expected return f...

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To get eighthed is to be outbid or undercut by one-eighth of a dollar (12.5 cents). Let's say Company XYZ is a big pension fund that wants to buy 500,000 shares of ABC Company from the DEF pensio...

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An either-or order is a group of limit orders linked together within a brokerage account. If one order is executed, all other linked orders are automatically canceled.Sometimes called a "one-cance...

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Something is elastic when its price varies with the price of another item. It the business world, the term most often refers to how much the price of a good or service changes when the supply of that ...

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Elasticity is a measure of the change in one variable in response to a change in another. In economics, elasticity generally refers to variables such as supply, demand, income, and price. The degr...

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The elasticity of supply, also known as price elasticity of supply, measures the responsiveness of the quantity supplied to a change in the price of a good, with all other factors remaining the s...

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An election period is a window of time during which a person can take a certain action. In the bond world, the term refers to the period of time a holder of an extendible or retractable bond can exten...

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Electronic commerce is a way of doing business over large electronic networks such as the Internet. Also called e-commerce, electronic commerce greatly facilitates transactions between companies and c...

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Commonly known as an ECN, an electronic communication network is a system for trading financial instruments that takes place outside of the markets and is sanctioned by the Securities and Exchange Com...

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EDGAR, the Electronic Data Gathering, Analysis and Retrieval system, is an automated system of submission used by public companies required to file forms with the U.S. Securities and Exchange Comm...

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Electronic filing, or e-File, is the online tax return filing system developed by the Internal Revenue Service (IRS) Individual taxpayers, businesses, large and mid-sized corporations, and ...

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An electronic funds transfer (EFT) allows payment between two parties by using electronic signals to transfer money. The current systems of electronic funds transfer began in the 1960s but became wide...

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Elephants are large institutions that make big trades. CalPERS (the California Public Employees' Retirement System) is the nation's largest pension fund. More than 1.6 million people there are employ...

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An elevator pitch is a quick explanation of a business idea or other proposal. The term reflects the idea that in the time it takes to ride an elevator, the speaker should be able to summarize the key...

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Elves make up a group of analysts and money managers who appeared on the PBS show "Wall Street Week," which was hosted by Louis Rukeyser. "Wall Street Week" aired from 1970 to 2005. I...

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An embargo is a government-instituted prevention of exports to a certain country. In the media world, an embargo is the release of information with the condition that it cannot be published or di...

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An embedded option is a provision in a security (typically a bond) that gives either the issuer (the company) or the investor the right to take some action in the future.Different from a stand alone o...

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An emerging market economy describes a nation's economy that is progressing toward becoming more advanced, usually by means of rapid growth and industrialization. These countries experience an exp...

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An emerging markets fund is a fund that invests in the securities of companies and governments in developing countries.Emerging markets have lower per-capita incomes, above-average sociopolitical inst...

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Eminent domain is a legal strategy that allows a federal or local government to seize private property for public use. The seizing authority must pay fair market value for the property seized.Let's sa...

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The Employee Benefits Security Administration (EBSA) is the branch of the United States Department of Labor responsible for overseeing the administration and planning of employee pension funds by comp...

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An employee contribution fund is a company-sponsored plan where employees deposit (contribute) their own money towards a charity.In an employee contribution fund, a company sets up a program where emp...

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An employee contribution plan is an employer-sponsored retirement plan where employees deposit (contribute) their own money to a special account.Employee contribution plans are usually funded by contr...

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Th Employee Retirement Income Security Act of 1974 (ERISA) is an American federal statute that protects the retirement assets of Americans by establishing a set of rules that must be followed by ...

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Employee Share Ownership Trust (ESOT) refers to a plan that assists in acquiring and allocating a company's stock for employees.A company uses an ESOT to sell its stock to its employees. ESOT'...

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Employee stock options (ESOs) are  call options on a company's common stock granted to a select group of its employees. Certain restrictions on the option provide a financial incentive for e...

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An employee stock ownership plan (ESOP), also known as a stock purchase plan, is a defined contribution plan whereby an employer invests the fund's assets in its own stock.To establish an ESOP, a ...

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An employer identification number (EIN) is a number assigned to businesses by the IRS. It is also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Numbe...

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The employment cost index, or ECI, is a quarterly report compiled by the Bureau of Labor Statistics within the U.S. Department of Labor that offers wage and benefit information and provides a leading ...

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An encumbrance is a limitation on the ownership of a property. In the real estate world, an encumbrance is similar to a lien. The bond world also includes encumbrances. For instance, let's ...

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Ending inventory is the book value of inventory at the end of a financial or accounting reporting period.Ending inventory equals the beginning inventory balance plus the cost of any inventor...

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An endowment is any asset donated to and for the perpetual benefit of a non-profit institution. The donation is usually made with the requirement that the principal remain intact and money earned from...

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An enrolled agent (EA) is person who is authorized to represent a taxpayer before the Internal Revenue Service (IRS). To become an EA, a person has to pass a three-part comprehensive IRS test of indi...

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Enterprise multiple is a financial indicator used to determine the value of a company. It is equal to a company’s enterprise value divided by its EBITDA (Earnings Before Interest, Taxes, Depreci...

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  Enterprise value represents the entire economic value of a company. More specifically, it is a measure of the theoretical takeover price that an investor would have to pay in order to ac...

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Enterprise value to cash flow from operations (EV/CFO) is the ratio of the entire economic value of a company to the cash it produces. The formula for EV/CFO is: EV/CFO = (Market Capitalization + T...

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An enterprise zone is a geographical area (often a few blocks or miles in a town) with a 0% tax on gains from the sale of assets and property sold in an enterprise zone. For example, let's say th...

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The Equal Credit Opportunity Act (ECOA) is legislation designed to ensure that all qualified people have access to credit. It prevents lenders from rejecting credit applicants based on race, gender, m...

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Put simply, equity is ownership of an asset of value. Ownership is created when the owner contributes to the financing of the asset purchase. Another way to finance the asset purchase is with debt...

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Equity financing is the method of raising capital by selling company stock to investors. In return for the investment, the shareholders receive ownership interests in the company.In order to grow, a c...

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An equity fund is an open or closed-end fund that invests primarily in stocks, allowing investors to buy into the fund and thus buy a basket of stocks more easily than they could purchase the individu...

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An equity income fund is a mutual fund composed largely of dividend-paying stocks.Equity income funds are made up of a variety of different income investments, but they generally invest in securities ...

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An Equity Linked Foreign Exchange Option (or ELF-X) is a put option or call option that shelters an investor from foreign exchange risk. It enables an investor to sell a foreign stock position or port...

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An equity linked note (or ELN) is a debt instrument that varies from a standard fixed-income security in that the coupon is built on the return of a single stock, basket of stocks, or equity index, ot...

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The equity multiplier is a ratio used to determine the financial leverage of a company. The formula for the equity multiplier is:Equity Multiplier = Total Assets / Total Stockholders' EquityI...

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The equity risk premium is the difference between the rate of return of a risk-free investment and the geometric mean return of an individual stock over the same time period. Since all i...

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As the name implies, equity-linked securities (ELKS) are hybrid debt securities whose return is connected to an underlying equity (usually a stock). ELKS pay a higher yield than the underlying securit...

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Equivalent annual cost (or EAC) is the cost per year of owning, operating, and maintaining an asset over its lifetime. EAC is often used as a tool in capital budget decision making for evaluating inv...

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An equivalent taxable interest rate (also called equivalent taxable yield) is the return that is required on a taxable investment to make it equal to the return on a tax-exempt investment. The equival...

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Errors and omissions (E&O) insurance is a type of professional liability insurance used by professionals and their firms to protect themselves, their companies, and their employees in the event of...

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Escrow is a financial arrangement whereby a third party holds funds in safekeeping pending the completion of a contract or other obligation. For example, let's assume a situation where someone is pur...

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In the real estate world, mortgage companies use escrow accounts to collect property taxes, homeowners insurance, private mortgage insurance and other payments that are required by the homeowner ...

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An escrow agreement is a certificate from an approved bank guaranteeing that an indicated financial security is deposited at that particular bank.John writes a call option for stock in company ABC. Wh...

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An estate is all of an individual’s property and financial assets and liabilities at the time of his or her death. An estate might include a home and other real estate owned by an individual, as we...

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An estate freeze is an estate planning strategy used by an owner to lock in an asset's value and avoid future tax liability when the asset is transferred to a beneficiary.An estate freeze is commo...

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Estate planning is the act of preparing for the transfer of a person's wealth and assets after his or her death. Assets, life insurance, pensions, real estate, cars, personal belongings, and debts are...

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An estate tax is levied on assets inherited by the heirs to a deceased person's estate.  The estate tax is applied differently according to U.S. Federal and state laws as well as international l...

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Euro Interbank Offered Rate (EURIBOR), is the rate at which European banks offer to lend unsecured funds to each other in the euro market.EURIBOR is sponsored by the European Banking Federation which ...

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Euro LIBOR is the interest rate at which banks borrow euros from other banks in the London interbank market.Euro LIBOR is essentially LIBOR denominated in Euros. The Euro LIBOR is also somewhat simila...

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A eurobank is a financial institution that makes loans and accepts deposits in foreign currencies -- simplifying international trade, transactions and investing.If an American company wants to buy par...

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A eurobond is a bond denominated in a currency not native to the issuer's home country. Eurobonds are commonly issued by governments, corporations, and international organizations.Let's assume...

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A eurodollar is U.S. currency held in banks outside the U.S. (typically in Europe). Eurodollars are not the same thing as euros, the currency of the European Union. The eurodollar market began in the...

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Europe, Australasia, Far East (or EAFE) refers to the economically developed regions of the world outside the United States and Canada.The EAFE is a broad market cap-weighted index that was formulated...

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The European Credit Research Institute (ECRI) provides analyses of retail financial services markets within the member states of the European Union. The ECRI is an independent, non-profit research in...

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A European option is a type of put or call option that can be exercised only on its expiration date.Suppose an investor, John, buys a European call option on March 1st that expires on the third Friday...

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The bearish evening star candlestick formation is a major reversal candlestick pattern.In many cases, only one candle is necessary to put a trader on high alert that a reversal may be happening. For e...

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Event risk is the risk of a negative impact on a company's financial position as a result of an unexpected event like a natural disaster, industrial accident or hostile takeover.Occasionally compa...

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An evergreen option is an employee incentive offered by many companies as a way for the employee to accumulate company shares.Evergreen options offers employees the opportunity to accumulate ownership...

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Some stocks pay cash (or additional stock) dividends to their investors throughout the year. The ex-dividend date (also referred to as “ex-date”) is important for an investor to know because i...

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An exceptional item is an unusually large and uncommon transaction charge that must be disclosed on the balance sheet in accordance with GAAP.Let's assume Company ABC is experiencing poor business. It...

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Excess return, also known as "alpha" or the "abnormal rate of return the portion of a security's or portfolio's return not explained by the overall market's rate of return. Rat...

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An exchange rate between two countries' currencies indicates the value of one currency relative to the other.  Let's say the current exchange rate between the dollar and the euro is 1.23 $/€. ...

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Exchange-rate risk, also called currency risk, is the risk that changes in the relative value of certain currencies will reduce the value of investments denominated in a foreign currency.Exchange-rate...

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Exchange-traded funds (ETFs) are securities that closely resemble index funds, but can be bought and sold during the day just like common stocks. These investment vehicles allow investors a conven...

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An exchangeable bond gives the holder the option to exchange the bond for the stock of a company other than the issuer (usually a subsidiary) at some future date and under prescribed conditions. This ...

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Excise tax refers to an indirect type of taxation imposed on the manufacture, sale or use of certain types of goods and products. Excise taxes are commonly included in the price of a product, such as...

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An executor administers the distribution of an estate to beneficiaries. A will is a legal document that indicates how a person wants his or her estate (money and property) to be distributed after deat...

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An exercise price is the price at which the holder of a call option has the right, but not the obligation, to purchase 100 shares of a particular underlying stock by the expiration date. Options are ...

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Existing home sales is an economic indicator released by the National Association of Realtors. The data reflect the number of homes that have previously been constructed (and therefore accounted for b...

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An exotic option is any option contract comprising attributes not common to most contracts which result in complicated valuation schemes. It is the opposite of a plain vanilla option.Exotic options co...

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Expansionary policy, or expansionary monetary policy, is when the Federal Reserve uses tools at its disposal in order to increase the money supply for the purpose of stimulating or growing the economy...

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Expectations theory suggests that the forward rates in current long-term bonds are closely related to the bond market's expectation about future short-term interest rates. Expectations theory...

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The expected family contribution (EFC) is the amount of money that a family is expected to contribute toward a student's college tuition or expenses in a given year.Upon completion and submission ...

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The expense ratio is the recurring management fees for a mutual fund. A fund company charges its fund holders the expense ratio each year (expressed in terms of a percentage of the fund's assets)....

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The expiration date is the last day an options contract can be exercised. After that, the contract becomes null and void. When an options contract is written, the expiration date is specified as...

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An exponential moving average (EMA) is a moving average for time-series data which places greater weight on more recent data. An exponential moving average places exponentially greater weight on data...

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Extended trading is the pre-market or after-market trading that occurs on electronic market exchanges either before or after regular stock market trading hours. In the United States, extended trading...

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External debt, otherwise known as "foreign debt," is the component of total debt held by creditors of foreign countries, i.e. non-residents of the debtor's country. To meet the definition of ext...

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An extraordinary item is an accounting term used to describe expenses that are infrequent, unusual and significant in size.Let's assume that Company XYZ, an American company, operates a chain of b...

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