A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

Earnings:

The net income of a company during a specific period. Net income generally refers to after-tax income.

Earnings Season:

The months in which a majority of quarterly corporate earnings are released to the public.

Economic Growth:

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another. Economic growth can be measured in nominal terms, which include inflation, or in real terms, which are adjusted for inflation.

For comparing one country’s economic growth to another, GDP or GNP per capita should be used as these take into account population differences between countries.

Elasticity:

A measure of sensitivity of one variable to another. More specifically, the degree to which consumers respond to price changes.

Elasticity = (% Change in Quantity) / (% Change in Price)

Emerging Market Fund: A mutual fund investing a majority of its assets in the financial markets of a developing country, typically a small market with a short operating history.

Equity:

1. Stock or any other security representing an ownership interest.

2. On the balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as “shareholder’s equity”.

3. In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage.

4. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. Thus, it is the amount, if any, the owner would receive after selling a property and paying off the mortgage.

Escrow:

A financial instrument held by a third party on behalf of the other two parties in a transaction. The funds are held by the escrow service until it receives the appropriate written or oral instructions or until obligations have been fulfilled. Securities, funds and other assets can be held in escrow.

Ex-Dividend:

The trading of shares when a declared dividend belongs to the seller rather than the buyer.

Exchange Traded Fund (ETF):

A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #