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earnings
Amount of profit available to ordinary shareholders: that is, the profit after all operating expenses, interest charges, taxes and dividends on preference stock, but excluding extraordinary items. It is often expressed as earnings per share: the year's earnings divided by the number of ordinary shares. In the UK, do not confuse with profit, (In the US earnings is often used interchangeably with profit).
economic and monetary union (Emu)
European Union's economic and monetary convergence among member countries, culminating in the introduction of a single currency, the euro.
electronic funds transfer at point of sale (Eftpos)
Used by retailers to make a direct debit from a customer's bank account in payment for a sale, typically by swiping a credit card through a terminal in a cash till.
employee share ownership plan (Esop)
Means for employees toacquire ownership of shares in their company without necessarilylaying out personal capital. In the UK version shares are acquiredthrough an employee benefit trust (EBT) and later distributed throughan Inland Revenue approved profit sharing trust (PST). Shares maybe given or sold to employees.
endowment policy
Combination of life assurance and investment whereby the sum assured is paid at a predetermined date or on death, if earlier.
equity
Shareholder equity is the value of shares held. A house owner's equity is the value of the house minus any unpaid home-purchase loan. Negative equity occurs when the house is worth less than the debt on it.
equity income fund
Fund investing in high-yielding equities inorder to pay above average dividends. Capital growth is not a priority.
eurobond
Bond or note which usually has a final fixed maturity butoccasionally is perpetual, issued in a eurocurrency. The buyer ofthe bond usually holds it outside the country of origin of the currencyin which it is denominated.
eurocurrency
Currency held by banks, corporations or individualsoutside its country of origin: eg eurodollar, eurosterling, etc. Theeuro part of the name derives from the place where the first market insuch currencies (normally dollars) arose.
euromarket
The international capital markets that deal in eurobonds,etc.
ex dividend, ex rights, ex cap, ex all
Ex div means that the buyer of a share is not entitled to the next dividend payment (it appears as xd in share listings); ex rights means not entitled to shares from a forthcoming rights issue; ex cap not entitled to a scrip issue; ex all not entitled to any of these. If the entitlement exists, the shares are cum div, cum rights, cum cap, cum all.
exchange control risk
The danger that a government may hamper orstop the flow of money in and out of a country.
exchange rate mechanism (ERM)
Pre-cursor to the European Union's single currency by which participating governments committedthemselves to maintain the value of their currencies in relation to theEuropean currency unit, taking action to correct any divergence fromagreed limits.
extraordinary items
Gains and losses resulting from non-recurring or unusual events.
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