Earning Per Share (EPS)
Profit after tax and minority interest divided by average number of shares.
EBIT
Effective before interest and taxes. Also known as operating income.
Effective Interest Rates
The compounded interest rate calculated on the actual inflows and outflows of cash.
Emerging Markets
Developing countries.
EMI
Equated monthly installments to be paid by the borrower in repayment of the loan taken (includes principal and interest). If you think you can save some interest by pre-paying your loan be sure your EMI agreement does not contain a pre-payment penalty. In the bizarre world of loan finance, lenders prefer that you do not repay your loan before the agreed term. They lose interest, you see.
Equities
Another name for shares.
Equity per Share
Shows how much of a company's equity one share represents. If the market price is greater than the equity per share, the market believes that the company will generate extra value. Equity divided by number of shares at the close of the period.
Ex Bonus
A Share is described as ex dividend when the buyer is not entitled for the dividend. The seller remains the beneficiary. The day after dividends is paid!
Ex Rights
A share is described as ex rights when the buyer is not entitled for the Rights. The seller remains the beneficiary. Ex rights shares are cheaper than Cum Rights and offer a good 'buy' opportunity for investment oriented players.
Expiry Date
The date and time after which a writer of an option cannot exercise his rights.
Exposure
When the value of your asset/product pledged with a bank against loan is reduced by market price fluctuation or for other reasons, it increases your 'exposure', that is, the bank feels insecure about the return of the loan. And when a bank feels insecure, what happens in the famous Hollywood movie 'Indecent Exposure' is nowhere the bank could do to you if you do not reduce your exposure.
Exposure Limit
The limit allowed to the broker by his exchange or to the customer by broker. It is the total value up to which one is allowed to hold open positions at any point of time.
Extended Hours Trading
Trades executed before or beyond normal market hours. |
