Finance terms starting with E

103 terms

Early withdrawal If you withdraw assets from a fixed-term investment, such as a certificate of deposit (CD), before it matures, it is considered an early withdrawal.
Early Withdrawal Penalty A charge that is given to holders of fixed –term investments if they withdraw their money before maturity.
Earnable Compensation A rate of compensation purely for working one’s full normal time, not amounts paid on a cash basis.
Earned Income Earned income is contrasted with investment income. It includes wages, salaries, honoraria, commission, professional fees, and other forms of compensation…
Earned Income Credit (EIC) The earned income tax credit (EIC) reduces the income tax of that certain low-income taxpayers would otherwise owe.
Earned premium The portion of a policy premium that has been used to actually buy coverage, or that the insurance company has "earned.
Earned Service Paid employment as an employee during which regular contributions are paid to the Retirement Systems.
Earnest Money Money given to a seller by a buyer to demonstrate the buyer’s good faith. If the deal falls through, the deposit is usually forfeited.
Earnings In the case of an individual, earnings include salary and other compensation for work you do, as well as interest, dividends, and increases in the value…
Earnings estimate Professional stock analysts use mathematical models that weigh companies' financial data to predict their future earnings per share on a quarterly…
Earnings momentum When a company's earnings per share grow from year to year at an ever-increasing rate, that pattern is described as earnings momentum.
Earnings Per Share (EPS) Earnings per share (EPS) is calculated by dividing a company's total earnings by the number of outstanding shares.
Earnings surprise When a company's earnings report either exceeds or fails to meet analysts' estimates, it's called an earnings surprise.
Earthquake Insurance A type of catastrophic coverage available for an additional premium to repair or replace your property/personal belongings when damaged by an earthquake.
EBITDA Earnings before interest, taxes, depreciation, and amortization are commonly shortened to EBITDA.
Economic cycle An economic cycle is a period during which a country's economy moves from strength to weakness and back to strength.
Economic indicator Economic indicators are statistical measurements of current business conditions.
Economy The way a country manages its money and resources (such as workers and land) to produce, buy, and sell goods and services.
Education savings account (ESA) You can put up to $2,000 a year into a Coverdell education savings account (ESA) that you establish in the name of a minor child.
Effective Date The date on which an insurance policy becomes effective.
Effective tax rate Your effective tax rate is the rate you actually pay on all of your taxable income.
Efficient market When the information that investors need to make investment decisions is widely available, thoroughly analyzed, and regularly used, the result is an…
Efficient market theory Proponents of the efficient market theory believe that a stock's current price accurately reflects what investors know about the stock.
Electronic Banking A service that allows an account holder to obtain account information and manage certain banking transactions through a personal computer via the…
Electronic benefits transfer (EBT) Electronic benefits transfer, or EBT, is a system through which recipients of certain government benefits receive and spend funds electronically, using a…
Electronic bill payment If you have an electronic bill payment arrangement with your bank, your bills are sent to an account you designate and the bank pays them automatically…
Electronic bill presentment If you pay bills online, you may be able to take advantage of electronic bill presentment, a paper-free method of reporting your outstanding charges and…
Electronic Check Conversion Electronic check conversion is a process in which your check is used as a source of information-for the check number, your account number, and the number…
Electronic communications network (ECN) An ECN is an alternative securities trading system that collects, displays, and executes orders electronically without a middleman, such as a specialist…
Electronic Data Gathering, Analysis, and Retrieval System (EDGAR) EDGAR is an electronic database that contains all the corporate financial reports filed with the Securities and Exchange Commission (SEC).
electronic filing (e-file) The transmission of tax information directly to the IRS using telephones or computers.
Electronic funds transfer Electronic funds transfer (EFT) is the means by which financial institutions exchange billions of dollars every day without the physical movement of any…
Electronic Funds Transfer (EFT) The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than…
Electronic Funds Transfer Act (EFTA) Signed by President Jimmy Carter in 1978, the act is intended to protect individual consumers engaging in electronic fund transfers (EFTs).
electronic preparation Electronic preparation means that tax preparation software and computers are used to complete tax returns.
Electronic Return Originator (ERO) The Authorized IRS e-file Provider that originates the electronic submission of an income tax return to the IRS.
Electronic Signature (or eSignature) An indication on an electronic record indicating that the signer approves or authorizes the record under the terms stated after going through an…
Elevated Building A building that has no basement and has its lowest elevated floor raised above the ground level by foundation walls, shear walls, posts, piers, pilings…
Elevation Certificate A certificate that verifies the elevation data of a structure on a given property relative to the ground level.
Elimination Period If you have disability insurance or long-term care insurance, there's a waiting period, called the elimination period, from the time you become disabled…
Embezzlement In most States, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those…
Emergency Economic Stabilization Act (EESA) A 2008 statute that authorized the U.S. Department of the Treasury to undertake specific measures to provide stability and prevent disruption in the…
Emergency fund An emergency fund is designed to provide financial back-up for unexpected expenses or for a period when you aren't working and need income.
Emergency Home Finance Act of 1970 The Emergency Home Finance Act of 1970 created Freddie Mac and authorized it to create a secondary market for conventional mortgages.
Emergency Program The initial phase of a community's participation in the National Flood Insurance Program.
Emerging market Countries in the process of building market-based economies are broadly referred to as emerging markets.
Emerging markets fund Emerging markets mutual funds invest primarily in the securities of countries in the process of building a market-based economy.
employee Works for an employer. Employers can control when, where, and how the employee performs the work.
Employee Retirement Income Security Act (ERISA) This comprehensive law, best known by the acronym ERISA, governs qualified retirement plans, including most private-company defined benefit and defined…
Employee stock ownership plan (ESOP) An ESOP is a trust to which a company contributes shares of newly issued stock, shares the company has held in reserve, or the cash to buy shares on the…
Employer sponsored retirement plan Employers may offer their employees either defined benefit or defined contribution retirement plans, or they may make both types of plans available.
Enclosure That portion of an elevated building below the lowest elevated floor that is either partially or fully shut-in by rigid walls.
Encoding The process used to imprint or inscribe MICR characters on checks, deposits, and other financial instruments.
End Review A reviewer assisting another reviewer may End Review to signify that the reviewer has completed review of a financial disclosure report.
Endorsement Amendment to the policy used to add, change, or delete coverage. Also referred to as a “rider.”
Endowment Funds Those funds that have been given to the State of Arizona and held in perpetual trust, the investment of which is made on behalf of designated…
Enhanced index fund An enhanced index fund chooses selectively among the stocks in a particular index in order to produce a slightly higher return.
Equal Credit Opportunity Act (ECOA) Prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or…
Equity Another word for "stock." It represents an ownership interest by shareholders in a corporation.
Equity fund A mutual fund whose portfolio consists primarily of common and/or preferred stock.
Equity stripping The lender encourages you to borrow heavily from the equity in your home (the amount you own free and clear of your mortgage) as an easy way to get…
Equivalent taxable yield While taxable bonds normally pay higher interest rates than tax-exempt bonds, they sometimes provide a lower overall yield.
Error Resolution The required process for resolving errors involving electronic transfers to and from deposit accounts
Escheat Reversion of real or personal property to the State when 1) a person dies without leaving a will and has no heirs, or 2) when the property (such as a bank…
Escrow A financial instrument held by a third party on behalf of the other two parties in a transaction.
Escrow Account An account that serves a specific purpose, which ends when a certain condition is met or a certain event occurs.
Escrow agent An escrow agent is the person or group that holds certain of your assets in an escrow account while you negotiate the final terms of a contract.
Escrow Analysis The periodic examination of escrow accounts by a mortgage company to verify that monthly deposits are sufficient to pay taxes, insurance, and other…
Estate Your estate is what you leave behind, financially speaking, when you die. To figure its worth, your assets are valued to determine your gross estate.
Estate Account An account held in the name of a decedent that is administered by an executor or administrator of the estate.
Estate tax Your estate owes federal estate tax on the value of your taxable estate if the estate is larger than the amount you are permitted to leave to your heirs…
estimated income and current yield In most cases, estimated income is the amount of dividend and/or interest expected to be received annually.
Ethics Agreement An ethics agreement is an arrangement that an employee or nominee makes with her agency to alleviate an actual or potential conflict of interest.
Ethics Counselor (EC) or Ethics Official An agency employee who is delegated agency ethics program responsibilities. In DoD, an EC is an attorney appointed in writing to perform specific ethics…
Euro The euro is the common currency of the European Monetary Union (EMU). The national currencies of the participating countries were replaced with euro coins…
Eurobond A eurobond is an international bond sold outside of the country in whose currency it is denominated, or issued.
Eurocurrency Eurocurrency is any major currency that is deposited by a national government or corporation based outside the country where the bank receiving the funds…
Eurodollar Eurodollars are US currency deposited in banks outside the US, usually, but not always in Europe.
European Central Bank (ECB) The European Central Bank is the central bank of the European Monetary Union (EMU), whose member countries use the euro as their currency.
European style option A listed option that you can exercise only on the last trading day before the expiration date is called a European style option whether it trades on a US…
Everyday debit card transactions Purchases made with your debit card on a day-to-day basis (excludes all checks and automatic bill payments)
Ex-dividend Without dividend. The buyer of shares quoted ex-dividend will not receive an already declared dividend.
Excepted Investment Fund (EIF) An EIF is a basic concept that reduces the degree of disclosure of certain investments.
Excepted Trust A trust in which a filer has a vested interest, but no knowledge of the holdings.
Exception Hold A period of time that allows the banks to exceed the maximum hold periods defined in the Expedited Funds Availability Act.
Excess contribution An excess contribution occurs when the salary deferrals or matching contributions of highly compensated employees are higher than the amounts permitted by…
Exchange An exchange generally occurs when one company acquires another. The shareholders of the acquired company are often given the option to sell their shares…
Exchange Rate The amount a dollar is worth when you exchange it for money from another country.
Exchange traded notes Exchange traded notes (ETNs) are debt securities issued by a financial institution, listed on a stock exchange, and traded in the secondary market.
Exchange-traded fund (ETF) Exchange-traded funds (ETFs) are listed on a stock exchange and trade like stock.
excise tax A tax on the sale or use of specific products or transactions.
Exclusion A contractual provision in an insurance policy that denies or restricts coverage for certain perils, persons, property or locations.
Exclusions Specific situations or circumstances listed in your policy describing when benefits will not be paid.
Executor/Executrix When you die, your executor administers your estate and follows the directions provided in your will.
exempt (from withholding) Free from withholding of federal income tax. A person must meet certain income, tax liability, and dependency criteria.
Exemption An exemption is a fixed dollar amount that you can subtract from your adjusted gross income to reduce your taxable income.
exemptions Amount that taxpayers can claim for themselves, their spouses, and eligible dependents. There are two types of exemptions-personal and dependency.
Exercise When you act on a buying or selling opportunity that you have been granted under the terms of a contract, you are said to exercise a right.
Exercise price An option's exercise price, also called the strike price, is the price at which you can buy or sell the stock or other financial product that underlies…
Expense ratio A mutual fund company's cost of doing business. It includes the fund's management fee as stated in the Simplified Prospectus.