Embedded Option Options that are a component of bond structures that give a right to bondholder or bond issuer to take action against another party. This is distinct from bare options, where the underlying security is separate from the option. … [Read more...]
Emerging Markets
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Emerging Markets A developing economy’s financial markets. … [Read more...]
Employee Stock Fund
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Employee Stock Fund Program sponsored by the firm that allows preferential treatment for employees in buying common stock shares of the employer firm. … [Read more...]
Endogenous Variable
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Endogenous Variable Using a model and determining a particular value. … [Read more...]
Endowment Funds
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Endowment Funds Funds that support institutions like private schools, colleges, hospitals, museums, and foundations through investments. Income is used for capital expenditures and operating expenses. … [Read more...]
Endowment Loan
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Endowment Loan Mortgage variant where borrower pays only interest on the mortgage, and payments that normally would have repaid the principal are directed into an endowment fund. Until the mortgage expires, the borrower does not repay the principal. … [Read more...]
End-of-Year Convention
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End-of-Year Convention Handling cash flows in the same manner as in the event that they arise at year end instead of the date convention being followed. The present is considered 0, the year end with respect to year 1 takes place in one year’s time and so on. … [Read more...]
Enhanced Indexing
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Enhanced Indexing Alternatively termed indexing plus. A strategy used in indexing with the aim of exceeding or duplicating the performance of a predetermined index with respect to its total return. … [Read more...]
Enhancement
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Enhancement Processes that have positive or favorable impact on the existing products of a firm. … [Read more...]
Equilibrium Market Price of Risk
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Equilibrium Market Price of Risk Slant of the CML or capital market line. The CML represents returns offered in exchange for a level of perceived risk. Each point depicted on the CML represents an equilibrium state in the market. The slope measures the return needed in addition to … [Read more...]
Equilibrium Rate of Interest
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Equilibrium Rate of Interest Also termed market-clearing interest rate. The rate of interest that can clear the market. … [Read more...]
Equipment Trust Certificates
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Equipment Trust Certificates Trust issued certificates wherein the trust was created to acquire and lease an asset. At the time the last certificate is repaid, the lessee regains ownership of leased asset. … [Read more...]
Equitable Relief
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Equitable Relief Remedy granted by a court order ordering a party to carry out an act or refrain from an act. Provided in civil claims in the form of injunctions and/ or specific performance of an act. … [Read more...]
Equity
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Equity Denotes ownership in a company. Also refers to the remaining value in dollars of futures trading accounts, when liquidation will take place at going market price as per assumption. … [Read more...]
Equity Cap
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Equity Cap Formal agreement wherein a party agrees to recompense another, in exchange for a premium, at predetermined periods of time if a related benchmark, measuring stock market performance, is above a level determined beforehand. … [Read more...]
Equity Claim
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Equity Claim Alternatively termed residual claim. Claim made, after debt obligations are fulfilled, over a portion of earnings. … [Read more...]
Equity Collar
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Equity Collar An equity cap sale combined with simultaneous purchase of equity floor. … [Read more...]
Equity Contribution Agreement
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Equity Contribution Agreement Formal agreement, that comes into play under certain conditions, to put in equity towards a project. … [Read more...]
Equity Floor
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Equity Floor Formal agreement wherein one party undertakes to pay another at predetermined time periods when a given benchmark that measures stock market performance declines to a level below a predetermined one. … [Read more...]
Equity Fund
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Equity Fund Also termed stock fund. Mutual fund that has an investment focus on stocks and may be actively or passively managed. … [Read more...]
