Durables Also termed durable goods. Consumer goods that are not required to be bought frequently. For example, appliances, furniture, consumer electronics etc. … [Read more...]
Duration
Duration Commonly used measure of the sensitivity of asset price or portfolio when there is a fluctuation in rate of interest. … [Read more...]
Dutch Auction
Dutch Auction Technique used with Treasury auctions wherein the minimum price that is required to sell the total offering turns into the actual price at which sale of all offered securities takes place. … [Read more...]
Dynamic Asset Allocation
Dynamic Asset Allocation Strategy used in asset allocation wherein the asset mix is mechanically determined and modified in tune with variances in prevailing market conditions, most often to protect the portfolio. … [Read more...]
Dynamic Hedging
Dynamic Hedging Rebalancing or reorganizing existing positions in a hedge to stay in line with changing market conditions. Often carried out via a synthetic put option to insulate the portfolio against loss. … [Read more...]
Dynamic Momentum Index
Dynamic Momentum Index Technical analysis indicator that identifies conditions wherein a given asset is overbought and oversold. Similar to the relative strength index (RSI). The DMI uses different stages in time as changes occur in volatility. … [Read more...]
EBIT (Earnings Before Interest and Taxes)
EBIT (Earnings Before Interest and Taxes) Calculated as revenues minus cost incurred for goods sold plus expenses pertaining to selling, administrative and general expenses. Profit earned from operating as well as non-operating sources prior to interest and tax deductions. … [Read more...]
EDI- Electronic Data Interchange
EDI- Electronic Data Interchange Electronic information exchange done in structured manner, from one firm's computer directly to another’s computer. … [Read more...]
EOQ- Economic Order Quantity
EOQ- Economic Order Quantity Quantity that should be ordered to minimize total costs associated with inventory. … [Read more...]
ESOP- Employee Stock Ownership Plan
ESOP- Employee Stock Ownership Plan A contribution to trust funds by companies for stock investments done for employees on their behalf. … [Read more...]
EAFE Index
EAFE Index Morgan Stanley’s European, Australian, Far East stock index. … [Read more...]
Early Exercise
Early Exercise Exercising options or other securities before the date of maturity. … [Read more...]
Earning Power
Earning Power Calculation of earnings prior to adjustment of interest and taxes payable (EBIT) when divided by assets of the business in total. Earnings that are possible under optimal conditions. … [Read more...]
Earnings Announcement
Earnings Announcement Public statement of profitability over a given period presented by a company. Normally the period covered is a quarter or a year. Generally presented on a specific date in the course of the earnings season and follows estimates given by analysts. A period of … [Read more...]
Earnings per Share
Earnings per Share Profit of a company divided by number of shares outstanding. A company that earns $5 million this year and has 5 million shares outstanding, has an EPS of $1 for each share. Often the weighted average of outstanding shares is used for this calculation. … [Read more...]
Earnings Retention Ratio
Earnings Retention Ratio Also termed the plowback rate. The proportion of earnings retained in business. … [Read more...]
Earnings Recast
Earnings Recast Amendment of an earnings statement, that has already been previously released, and re-releasing after changes made with a specific intent. Non representative or non recurring earnings may be separated from the statement during recasting to show a more accurate … [Read more...]
Earnings Surprises
Earnings Surprises Any deviation from consensus forecast about earnings provided by First Call, IBES or similar institutions. Negative difference have adverse effect on the price of stock to a greater degree than favorable impact of positive difference. … [Read more...]
Earnings Yield
Earnings Yield A percentage representing earnings for each share (EPS) after interest and tax deductions for debt carrying fixed interest as compared to current price of share, expressed as ratio. Inverse ratio to P/E ratio. Total of earnings over Twelve Months divided by total … [Read more...]
Economic Dependence
Economic Dependence Arises when costs and earnings related to a project are dependent on those incurred and generated by a second project. … [Read more...]