Glossary

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Earnings Per Share (EPS)

    Company's earnings divided by the number of shares outstanding.
Earnings Report
    A financial statement, also called Income Statement, issued by a company showing its earnings or losses over a given period.
EBIT
    A company's Earnings Before Interest and Taxes.
EDGAR (Electronic Data Gathering, Analysis, and Retrieval)
    An electronic system implemented by the SEC that is used by companies to transmit all documents required to be filed with the SEC in relation to corporate offerings and ongoing disclosure obligations. EDGAR became fully operational mid 1995.
Efficient Market
    A market in which information is instantaneously reflected in the price.
Efficient Market Hypothesis (EMH)
    A hypothesis that U.S. equity markets are efficient.
Economic Investment
    Investment in real assets: plant, equipment, and intangible assets. 
Ending Net Asset Value
    The market value of a fund share on a predetermined end date.
Eurobonds
    Bonds that are marketed internationally.
Eurodollar Market
    A banking market in U.S. dollars outside the U.S.
Exercise Price
    The price at which a call option or put may be exercised. Also called strike price.
Exchange
    There are three main U.S. stock exchanges on which securities are traded. The American Stock Exchange (AMEX), Nasdaq is the National Association of Securities Dealers, and the New York Stock Exchange (NYSE).
Exchange Rate Mechanism (ERM)
    ERM is a system that limits currency fluctuations to a range of 15 percent in either direction.
Ex-Dividend Date
    The date which determines ownership of stock for the purpose of paying dividends. Owners purchasing shares on or after the ex-dividend date do not receive the dividends. Only owners before this date would be registered to receive the declared dividend. The date is set at four business days prior to the record date.
External Financing
    Financing projects through new issues of securities; debt and/or equity.
Extra Dividend
    Dividend that is not expected to be repeated.