Events of Default

Events of Default Events specified in a contract that enable lenders to ask for immediate debt repayment. … [Read more...]

Evergreen Credit

Evergreen Credit Credit that is available without a specific maturity date on a revolving basis. … [Read more...]

Ex Post Return

Ex Post Return Refer: Holding period return. Rate of return over a specific period. … [Read more...]

Exact Matching

Exact Matching Portfolio management strategy used with bonds to find the most economical portfolio that can generate cash inflows that equal the cash outflows that the investment finances. … [Read more...]

Exante Return

Exante Return A portfolio’s expected return that is based on the returns expected from component assets and their weights in the portfolio. … [Read more...]

Exception Item

Exception Item Banking terminology that refers to a check that cannot be processed because of one of several reasons. For example, a stop payment order, account has been closed or signature is missing. … [Read more...]

Excess Reserves

Excess Reserves Actual reserves minus required reserves. Shows potential for credit expansion. … [Read more...]

Excess Return on the Market Portfolio

Excess Return on the Market Portfolio Return generated by a market portfolio minus rate at which risk is zero. … [Read more...]

Excess Returns

Excess Returns Also termed abnormal returns. The returns generated in excess of what is required or predicted by an asset pricing model. … [Read more...]

Exchange

Exchange A platform or market where bonds, shares, futures and options on stocks, indices and commodities can be traded. Main stock exchanges in the U.S: New York Stock Exchange (NYSE), the National Association of Securities Dealers (NASDAQ), American Stock Exchange (AMEX). … [Read more...]

The Exchange

The Exchange The New York stock exchange. Also termed Big Board. Location: Wall Street, New York City. Over 2,000 preferred and common stocks are traded here. Founded in 1792, this is the oldest and largest exchange in the U.S. … [Read more...]

Exchange Controls

Exchange Controls Restrictions placed by the Government over purchase of local/ domestic currency by citizens of other countries or purchase of overseas currencies by local/ domestic citizens. … [Read more...]

Exchange Distribution

Exchange Distribution Trade wherein several buy- sell orders have been pooled into one transaction that is carried out with a large block of shares being traded in an exchange. … [Read more...]

Exchange of Assets

Exchange of Assets Purchase or acquisition of a different business by means of buying its assets and paying cash or stock in exchange. … [Read more...]

Exchange of Stock

Exchange of Stock Buying or acquiring another company through acquiring its stock by paying shares or cash in exchange. … [Read more...]

Exchange Offer

Exchange Offer A firm’s offer to exchange one security, for example, bond or preferred stock, for another security, such common stock shares. … [Read more...]

Exchange Rate

Exchange Rate Current price of currency of a country as expressed in terms of currency used in another country. … [Read more...]

Exchange Rate Mechanism (ERM)

Exchange Rate Mechanism (ERM) Methodology that enables EMS members to maintain their exchange rates for currency within a range previously agreed upon, when compared with other members. … [Read more...]

Exchange Rate Risk

Exchange Rate Risk Also termed currency risk. Risk of changes in the value of investment arising out changes in exchange rates of currency. … [Read more...]

Exchange Risk

Exchange Risk The fluctuation in a firm's value that is the outcome of unpredicted exchange rate movements. Or the degree to which the current value of a business is predicted to fluctuate as a consequence of a specific currency's decline in value or appreciation in value. … [Read more...]