Browse 'E'
Searching for 'E'...Found 295 matches; displaying matches 1 to 20    

1. each way


On both purchase and sale, as of a broker's commission.


See Also

round turn


2. EAFE Index


The Europe, Australia, and Far East Index from Morgan Stanley Capital International. An unmanaged, market-value weighted index designed to measure the overall condition of overseas markets.

3. early exercise


The exercise or assignment of an option prior to expiration.

4. early retirement


A retirement plan provision which allows an employee to retire before the company's official retirement age. Generally, if an employee elects to exercise this option, he or she can expect to receive fewer benefits than if the employee had waited until the official retirement age. In the case of Social Security, the practice of retiring before the official retirement age of 65. Individuals may choose to retire as early as age 62, but will get fewer benefits than if they were to retire at the official retirement age.


See Also

qualified retirement plan


5. early withdrawal penalty


A penalty on money withdrawn prematurely from a fixed-term investment, such as a tax-deferred retirement plan before age 59 1/2.

6. earned benefit


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

7. earned income


Compensation from participation in a business, including wages, salary, tips, commissions and bonuses. opposite of unearned income.


See Also

unearned revenue


8. earned income tax credit


A relief from the Social Security tax for working, low-income individuals. Congress originally approved the tax credit in 1975 to offset the burden of Social Security taxes and to provide an incentive to work.

9. earned surplus


Earnings not paid out as dividends but instead reinvested in the core business or used to pay off debt. also called retained earnings or accumulated earnings or unappropriated profit.


See Also

unappropriated profit


10. earnest money


A deposit paid by a buyer to a seller to demonstrate intention to complete the purchase.


See Also

good faith deposit


11. earning asset


An asset which provides income.


See Also

net interest margin, working capital loan


12. earnings


Revenues minus cost of sales, operating expenses, and taxes, over a given period of time. Earnings are the reason corporations exist, and are often the single most important determinant of a stock's price. Earnings are important to investors because they give an indication of the company's expected futuredividends and its potential for growth and capital appreciation. That does not necessarily mean that low or negative earnings always indicate a bad stock; for example, many young companies report negative earnings as they attempt to grow quickly enough to capture a new market, at which point they'll be even more profitable than they otherwise might have been. also called income.


See Also

dilution, fundamental analysis, growth, normalized earnings, operating income, price/earnings ratio, value investing, cash earnings, current income, cookie jar accounting, earnings estimate, earnings growth, guidance, recast earnings, look-through earnings


13. Earnings Before Interest and Taxes


EBIT. A measure of a company's earning power from ongoing operations, equal to earnings before deduction of interest payments and income taxes. also called operating profit or operating income.

14. 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. Calculated by looking at earnings before the deduction of interest expenses, taxes, depreciation, and amortization. This earnings measure is of particular interest in cases where companies have large amounts of fixed assets which are subject to heavy depreciation charges (such as manufacturing companies) or in the case where a company has a large amount of acquired intangible assets on its books and is thus subject to large amortization charges (such as a company that has purchased a brand or a company that has recently made a large acquisition). Since the distortionary accounting and financing effects on company earnings do not factor into EBIDTA, it is a good way of comparing companies within and across industries. This measure is also of interest to a company's creditors, since EBIDTA is essentially the income that a company has free for interest payments. In general, EBIDTA is a useful measure only for large companies with significant assets, and/or for companies with a significant amount of debt financing. It is rarely a useful measure for evaluating a small company with no significant loans. Sometimes also called operational cash flow.

15. 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. Calculated by looking at earnings before the deduction of interest expenses, taxes, depreciation, amortization, and rent. Similar to, but less common than, Earnings Before Interest, Taxes, Depreciation, and Amortization.

16. 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.

17. earnings estimate


The expected quarterly or annual earnings of a given company, as estimated by an analyst or other market individual or company. Earnings estimates are watched closely by investors because they are an important indication of the company's outlook, but even the professionals have difficulty predicting earnings accurately.


See Also

guidance, forward P/E


18. earnings growth


A measure of growth in a company's net income over a specific period, often one year. The term can apply to actual data from previous periods or estimated data for future periods.


See Also

growth and income fund, historical data, PEG ratio


19. earnings multiple


The most common measure of how expensive a stock is. The earnings multiple is equal to a stock's market capitalization divided by its after-tax earnings over a 12-month period, usually the trailing period but occasionally the current or forward period. The value is the same whether the calculation is done for the whole company or on a per-share basis. The higher the earnings multiple, the more the market is willing to pay for each dollar of annual earnings. The last year's earnings multiple would be actual, while current year and forward year earnings multiple would be estimates, but in each case, the "P" in the equation is the current price. Companies that are not currently profitable (that is, ones which have negative earnings) don't have a earnings multiple at all. also called price/earnings ratio (P/E ratio).


See Also

price/earnings ratio


20. earnings multiplier


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


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