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
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EAFE Index Morgan Stanley’s European, Australian, Far East stock index. … [Read more...]
Early Exercise
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Early Exercise Exercising options or other securities before the date of maturity. … [Read more...]
Earning Power
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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
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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
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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
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Earnings Retention Ratio Also termed the plowback rate. The proportion of earnings retained in business. … [Read more...]
Earnings Recast
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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
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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
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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
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Economic Dependence Arises when costs and earnings related to a project are dependent on those incurred and generated by a second project. … [Read more...]
Economic Cycle
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Economic Cycle Fluctuation and movement normally witnessed in the economy in between times of expansion and contraction. The prevailing phase of the economic cycle is determined by many factors such as (GDP), employment rates, interest rates, and spending. … [Read more...]
Economic Defeasance
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Economic Defeasance Refer: in substance defeasance. Process wherein debt is not cancelled but is not shown in balance sheet. … [Read more...]
Economic Earnings
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Economic Earnings In event of zero change in productive capacity of the firm, the real funds flow that can be paid out indefinitely by it. … [Read more...]
Economic Exposure
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Economic Exposure Extent or degree up to which level the firm’s value changes owing to changes in exchange rate. … [Read more...]
Economic Income
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Economic Income Change or variance in present value plus cash flow. … [Read more...]
Economic Profit (Or Loss)
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Economic Profit (Or Loss) Also termed EVA or economic value added. Calculated as revenue earned from sales of the output minus opportunity cost of inputs used. … [Read more...]
Economic Rents
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Economic Rents Excess profits above and beyond level of competition. … [Read more...]
Economic Risk
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Economic Risk Term used in project finance that represents a risk that it may not be possible to sell output at prices where operating/ maintenance costs are covered and debt are fully met. … [Read more...]
Economic Surplus
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Economic Surplus The difference in the prevailing value in the market of the entity’s assets and that of the liabilities it holds. … [Read more...]
Letter of Comment