Financial Terms – E

Earmark – 1. To set aside money today for a future purpose. 2. An American Congressional mandate to invest money in a project. 3. To brand an animal’s ear to show ownership or identity. The word could be a verb or a noun.

Earn – to receive payment for work that we have done. If you work 40 hours you will earn more than if you work just 20 hours. We also use the term when we gain other things from people. For example, we can earn somebody’s respect, affection, or esteem.

Earning Power – the potential to profit at a corporation. When utilising this term, we might also mean a person’s ability to generate income. Investors consider the earning potential of a company before deciding where to invest their capital. Earning power can be calculated by dividing operating income by total assets.

Earnings – the profit that a company generates over a specific period (usually over a quarter (three calendar months) or a year).

Earnings Per Share (EPS) – the amount of profit a company allocates to every outstanding share of common stock. A business’ total profits, minus dividends, divided by the total number of common stock.

Easement – the right to access or live on someone else’s land. For instance, if the entire perimeter of my land is covered by water, I must cross my neighbor’s land to get to the road. Although there are many other kinds of easements, if I am given permission to do this, I already have one.

Easy Monetary Policy – a central bank policy of low interest rates. When the economy is lagging, central banks may decrease interest rates to encourage growth. As interest rates decline, more people and businesses borrow money. They thus raise their spending, contributing to GDP growth.

EBITDA – an acronym for earnings before interest, taxes, depreciation, and amortization, i.e. Revenue minus Expenses (excl. interest, taxes, depreciation and amortization).

E-Book – an E-Book is an electronic copy of a printed book that can be read on the screen of a computer, mobile device, tablet, or dedicated e-reader.

Echo Bubble – a smaller bubble that comes after a bigger one. When the stock market crashes, it is considered that the bubble has burst. Occasionally, premature recovery can happen. As investors become more enthused, markets expand. But it is short-lived. As a result of that second bubble burst, markets again crash. We refer to the second bubble as an echo bubble. The economics is another area where this adage might be used.

E-Cigarette –An e-cigarette, vape pen, or electronic hookah are other names for a nicotine delivery system for people who don’t smoke. The user inhales a vaporised liquid or aerosol, which frequently contains nicotine. The use of e-cigarettes, or vaping, is less dangerous than smoking tobacco, but studies have shown that it is best to neither smoke nor vape.

Eclectic Paradigm – a business approach that determines whether it is good for a company to engage in foreign direct investment. The paradigm looks at three potential advantages: ownership, location, and internalization.

E-Commerce – a business model that focuses on doing commercial transactions online, i.e., on the Internet. E-commerce stands for Electronic Commerce.

Ecommerce Marketing – the process of promoting awareness of a brand’s online store offerings through a variety of different marketing channels.

Eco-Efficiency – an approach of management that many businesses all over the world have adopted. It entails maximising output while using less resources and less energy. Having both efficiency and environmental responsibility, to put it another way.

Ecological Impact – the effect that a phenomenon, natural event, or human activity has on nearby living organisms and their environment. The effects that occurrences like volcanic eruptions or traffic pollution have on living things and the habitats in which they live, to put it another way.

Ecological Indicator – an organism that tells us about the state or condition of our ecosystem. An ecological indicator may tell us about air pollution or biodiversity. It is a collective term for stressor indicators, exposure, and habitat response.

Ecological Load – the demands and stresses that organisms place on ecosystems. Human demands, for example, are food and water. Pollution is an example of stress.

Ecology – the study of how organisms, i.e., living things, interact with one another and also their physical environment. It is a branch of biology. In politics, ecology is a movement that strives to protect our environment.

Econometrics – the application of statistical methods and mathematics to describe economic systems and test economic hypotheses. It turns theoretical economic models into tools that politicians and other policymakers can use.

Economic Activity – includes producing, obtaining, selling, or distributing goods and services. Economic activity is found from the Primary level through the Quaternary level. Any activity that involves money, the exchange of goods or services, or both, is considered to be an economic activity.

Economic Analysis – an analysis or research of issues or topics from the perspective of an economist. It is the analysis of an industry’s economic structures. Some analyses aim to determine whether a project is feasible or whether a company is profitable. Economic judgments can take many different shapes.

Economic Assumptions – a set of assumptions that a company makes about the future economic situation. Economists and statisticians also make economic assumptions when they build economic models.

Economic Base – firms that employ a high number of locals and provide goods or services to customers or businesses outside the area. A factory with a sizable workforce that sells to businesses or consumers outside the neighbourhood makes up the economic foundation. They are frequently referred to as “basic industries.”

Economic Benefit – a benefit that may be measured in dollars, or, alternatively, in terms of money. Economic benefits include things like revenues, net income, profits, and net cash flow. Economic benefits for a nation can include things like the development of jobs or higher tax collections for the government.

Economic Bubble – also known as a price bubble or a market bubble, an economic bubble happens when securities are traded at much higher prices than what they are intrinsically worth.

Economic Capital – how much risk capital a financial institution should have so that it can survive market or credit shocks. The amount is determined by the company itself or its shareholders.

Economic Climate – the general state of the economy, i.e., economic conditions. The term may refer to the local, national, regional, or global economy. It may focus on the jobs market, stock market, the availability of credit, and levels of investment.

Economic Census – a project that certain nations run and publishes a list of business statistics. For instance, every five years, the United States Economic Census is published. In contrast, India’s is only released irregularly—typically every five to ten years.

Economic Cost – the accounting cost plus opportunity cost, i.e. how much doing something costs in money terms, as well as how it compares against doing something else.

Economic Crisis – a situation in which a nation’s economy rapidly falls over night. Another name for it is a true economic crisis. Economic crises typically follow financial crises that have an impact on the banking and finance sectors. The entire economy is impacted by an economic crisis.

Economic Dependence – a situation in which one item depends on another or on something happening. For instance, rainfall affects farmers’ ability to make a living. The supplier’s quick delivery is crucial for the customer’s company operations. Economic dependence on other countries is a fact.

Economic Depression – a period of economic contraction that exceeds three years. During the whole, period, GDP contracts by at least ten percent. An economic depression is longer than a recession. However, they both have the same starting dates.

Economic Determinism – a belief or theory that all social and political activities and phenomena are the result of how society’s economy is organized. It is a socioeconomic concept that market forces determine all social and political change.

Economic Development – the process through which a country converts its economy from a primitive one to a modern one. Industry, and eventually services, are displacing agriculture in the population. With economic growth, people’s access to high-quality housing, health, and academic performance all get better.

Economic Downturn –When the economy shrinks or growth slows, property and stock prices fall, unemployment increases, borrowing levels drop, and businesses cut down on investment and production. An economic downturn may occasionally precede a recession.

Economic Equilibrium – an economic state in which the forces of supply and demand are in perfect balance. In other words, when demand equals supply. When there is economic equilibrium, there are no outside forces causing disruption.

Economic Environment – all the external economic factors that have an impact on consumer and business spending patterns and, consequently, on business performance. They could be macroeconomic or microeconomic variables, i.e., large- or small-scale factors.

Economic Geography – a sub-field of Geography and Economics, studies the location, distribution and spatial organization of economic activities across the world.

Economic Globalization – the increasing mobility of capital, goods, services, technology and people internationally. It also refers to a nation’s integration into the global economy. Also known as simply globalization.

Economic Growth – all the external economic factors that have an impact on consumer and business spending patterns and, consequently, on business performance. They could be macroeconomic or microeconomic variables, i.e., large- or small-scale factors.

Economic Life – the time frame before the cost of repairs reaches a level at which the asset should no longer be kept, or the time frame during which a machine, factory, vehicle, or building (an asset) generates more income than it costs to operate and maintain. also known as the useful life, service life, or depreciable life.

Economic Model a shortened description of the truth. Economic models simulate or predict future outcomes under different circumstances. Specialists who must communicate with laypeople will use models to simplify their complex facts for them. Generally speaking, forecasts are less accurate than simulations.

Economic Risk – the likelihood that a company or investment could suffer losses as a result of regulatory changes, exchange rate fluctuations, higher taxes, nationalisation, or economic sanctions. Economic risk may have an impact on the domestic or global economy depending on where the investment is made or the company operates.

Economics – the study of the factors that determine the production, distribution and consumption of goods and services. Economics examines how people use scarce resources that have alternative uses.

Economic Sanctions – harsh measures taken against a country in an effort to modify policy. Examples of such measures include trade restrictions, financial limitations, arms embargoes, travel bans, and financial limits. The objective might be to resolve a trade dispute, stop violations of human rights, stop a nation from developing nuclear weapons, fight terrorism, enhance cybersecurity, or subdue drug lords.

Economic Surplus – The Marshallian Surplus, also known as Total Welfare, is the sum of producer surplus and consumer surplus. Consumer surplus is the profit made by consumers who were able to purchase a good for less than the highest price they would have accepted. The discrepancy, referred to as the producer surplus, occurs when a provider sells a good or service for less than their minimum selling price. The three sentences were used by British economist Alfred Marshall in his 1890 book, The Principles of Economics.

Economic System – a structure that explains how each economy’s players interact with one another. A nation allocates resources and distributes goods and services in a planned way. All the organisations, agencies, institutions, institutions, decision-making processes, and consumption patterns that make up the economic framework of a certain community come together to form an economic system.

Economic Tigers – The economies of Singapore, South Korea, Taiwan, and Hong Kong grew by an average of more than 7% yearly from the 1960s through the 1990s. In a few decades, they went from being low-income economies (third world nations) to advanced ones (industrialized nations). sometimes known as Asian Dragons or Asian Tigers.

Economic Value – the value of an asset calculated according to its ability to generate income. The most a consumer is willing to pay for a good or service.

Economic Value Added – a method of evaluating a company’s performance in relation to the money invested in it. If the indicator displays a profit, it means the business or project generated a higher return on its invested capital than it did on its acquisition costs. additionally known as financial gain.

Economies of Scale – In microeconomics, it alludes to the overall unit costs of production, which go up as output rises and down when output declines. Increased output makes it possible to distribute fixed costs, which largely stay constant, over a larger number of unit costs. Economies of scale might be internal or external. The opposite is true with diseconomies of scale.

Economist – somebody who specializes in economics, i.e., an economics expert. Economists may also study, develop, and apply economic notions, theories, and concepts and write about economic policy.

Ecotourism – a type of tourism which involves responsible travel to areas of ecological interest.

Education – the process of imparting or acquiring knowledge, i.e., the process of teaching and learning. The meaning may vary, depending on who says it, where, and in which context.

Efficacy – means the same as effectiveness in most cases. Efficacy is the ability to produce an intended or desired result. The term is more commonly used in the world of medicine and pharmacology than business & finance.

Effective Margin – the amount generated from an asset when taking into account the financing costs of a prepayment and interest. It represents potential profits if funds change but income remains the same.

Efficiency – is all about utilising the resources that are already available to the fullest. Effective businesses make the most of their available resources. Efficiency compares what is currently produced with what may be produced without changing the resources that are already accessible, such as time, money, machinery, the size and skill level of the labour force, and the availability of labour.

Efficient Diversification – refers to the organizing principle of portfolio theory, which attempts to help boost the expected return for a portfolio, given a specified level risk.

Efficient Portfolio – refers to a portfolio that gives the best return given a specific level of risk. The concept was introduced by American economist Harry Max Markowitz in 1952.

E-Learning – stands for Electronic Learning, i.e., online learning or online education. In other words, doing a course via the Internet rather than physically being at the learning center’s campus.

Electric Vehicle – a vehicle that runs on electricity, either fully or partially. We also refer to it as an EV or e-vehicle. EVs have on-board batteries or fuel cells. Their owners recharge the batteries by plugging them into the electricity grid.

E-Mail Bomb – the sending of a massive number of e-mails to an e-mail account holder. We also refer to it as a ‘mail bomb.’ The flood of emails overwhelms the system, causing it to crash. E-mail bombs are cyber attacks – they are nasty.

E-Mail Marketing – the act of sending emails to promote a company’s or organization’s goods or services, request donations, or invite readers to become members. It is part of digital marketing.

Embargo – a request to temporarily halt something, usually in relation to a country. Ships from a particular country may not be allowed to enter your country’s ports due to an embargo. It can also mean to halt sharing information, as in “The police petitioned for a new embargo while they tried to discover the kidnappers and free the hostages.”

E-Meeting – a meeting that takes place electronically. Hence the name, ‘e” (electronic) + ‘meeting’ = ‘electronic meeting.’ Most e-meetings are done using the Internet. We also call it an e-conference or online meeting.

Emerging Markets – The concept refers to countries that are neither border markets for low-income countries nor advanced economies. They have a young population that shares the same desires as those in industrialised nations, a developing middle class, a high rate of literacy, and a growing industrial base.

Empathy – is the ability to listen in a non-judgemental way, sense the other person’s feelings, and imagine what they are thinking. When a person is empathic towards me, I feel accepted and understood.

Endowment Mortgage – a mortgage which also has a life insurance policy (endowment policy). At the end of the contract the life insurance policy is used to pay off what is owed. This type of loan was popular in the UK and Ireland in the 1980s.

Energy Conservation –  the practice of using less energy. It is achieved by adjusting behaviors and habits.

Energy Efficiency – the practice of using less energy to provide the same amount of useful output from a service (such as heating water, lighting, or cooling a fridge).

Engineer – an engineer who applies scientific concepts to the creation of machinery, tools, and other constructions, including buildings, robots, chemicals, and pharmaceuticals. Engineers come in more than 40 different subcategories.

Engineering – a huge field. Engineers use scientific principles to create things such as machines, structures, robots, chemicals, pharmaceuticals, and many more. There are dozens of different types of engineers.

Enterprise – could be used to describe a quality that some people have that permits them to be risk-takers in business and pursue their original ideas. A business is an enterprise as well. The phrase can also be used to describe a difficult or important circumstance. Entrepreneurs are proactive individuals.

Entity – It refers to everything organised and run in compliance with commercial law for the purpose of conducting business, engaging in charitable endeavours, or engaging in other lawful activities. In layman’s words, an entity is a real thing, a being, something that exists, and a unique being that exists in its own right. For taxation purposes, a company is regarded as a separate commercial entity from its owner (s).

Entrepreneur – somebody who sees a business opportunity and creates a company to exploit it. The term may also refer to a person who identifies a problem and then develops a business venture to solve it.

Environment – all the conditions and surroundings in which organisms exist and function. The atmosphere, hydrosphere, and lithosphere are three parts of the non-living environment. We call the living part the biosphere.

Environmental Factors – all elements that affect a company’s health, both internal and external. The calibre and attitude of the staff as well as the management’s leadership abilities are internal considerations. Examples of external influences include the availability or scarcity of particular resources, the level and kind of competition, technological breakthroughs, customer attitudes, and legislative changes. The phrase also has geographical, ecological, and scientific overtones.

Equity Finance – also known as equity financing, is a way to raise money for business expansion by the sale of all or a portion of the company’s shares. The equity may occasionally be sold in exchange for other assets.

Equity – the value of ownership of an asset after liabilities with that asset are cleared. Equity or shareholders’ equity is equal to the capital in a business. If you own a house worth $200,000 and your outstanding mortgage is $120,000, your equity is $80,000.

Ergonomics – The field of design known as “Human Factors” employs theory, data, concepts, and approaches to design to improve both human well-being and system performance. It is concerned with comprehending how people and other system components interact.

ESG (Environmental Social and Governance) – a type of screening practised today by many portfolio managers and investors that only includes businesses that satisfy specific requirements related to the environment, society, and governance (how the firm polices itself). In the realm of capital markets, ESG is a market segment that is expanding quickly and is expected to do so much more quickly in the future. Contrary to common belief, assets that have undergone ESG screening frequently offer returns that are above average.

eSports – short for Electronic Sports. In eSports, gamers, who play video/computer games, compete online or in huge arenas.

Estate planning – arranging and preparing the transfer of a person’s asset base after his or her death.

Ethereum – This phrase could be used to describe either the cryptocurrency “Ether” or the decentralised infrastructure that underpins smart contracts. Programs known as smart contracts run without interference from the outside world or censorship. Furthermore, there is no potential for downtime. The Ethereum platform, according to its creator, renders fraud impossible.

Ethics – the moral principles that direct our behaviour in both our personal and professional lives. Business ethics, also referred to as corporate ethics, is concerned with how we perceive and address ethical and moral issues. It affects how we deal with customers, competitors, the law, employees, etc.

E-ticket – an electronic ticket. It is a digital ticket with a validity period equal to that of a paper ticket. The e-ticket is a digital file stored in a computer system that contains details about the event, the location, the aeroplane, etc. as well as the payer’s name. Most airline tickets are now given out online.

European Central Bank (ECB) – the central bank for the euro. it manages the monetary policy of the Eurozone (which has 18 EU member states).

European Commission – the EU’s politically neutral executive body. It recommends enacting new rules. The decision to enact them into law rests with the Council of Europe and the European Parliament. The Commission also executes decisions made by the Council and the Parliament.

European Investment Bank (EIB) – an entity within the European Union that offers financing for infrastructure projects like roads, railroads, and tunnels and economic development (but also outside). It is the largest public lending organisation in the world.

European Parliament – the EU’s law-making body. It consists of 751 MEPs (Members of the European Parliament). European voters elect their MEP every five years.

European Union – an economic and political union of 28 European countries or member states. We also refer to it as the EU. It is the world’s largest consumer market.

Evergreen Loan – a type of loan that goes on and on. The credit facility is repeatedly renewed. The principal does not have to be paid off within a certain period. Also called a revolving loan or standing loan.

E-Wallet – a digital system that stores the user’s payment information such as credit cards, address, ID, etc. We also call it a digital wallet.

Excise – a duty or tax that governments levy on certain goods such as gasoline, alcoholic drinks, and tobacco products. As a verb, the term means to remove something, often by cutting it out.

Expenditure – Spending is the category in which we, businesses, governments, and other organisations or entities place our financial resources. It is the act of parting with cash. There are numerous categories, including capital, revenue, and government expenditures.

Expense – a cost incurred over a specific period which is part of a business’ operating activities. An outflow of money from one person or entity to pay for a good or service. It is a cost that is paid for usually in exchange for something of value.

Expense Ratio – represents a mutual fund’s total operating expenses as a percentage of the average net assets of the fund.

Exports – These are goods and services that are offered by people, companies, and other organisations based in one nation to consumers overseas. Exports are the complete antithesis of imports. World trade includes both exports and imports. China is the world’s top exporting nation.

Export Credit Agency (ECA) – a (often government-sponsored) group that supports domestic businesses in exporting, especially to riskier markets like low-income nations and emerging economies. They are also referred to as ECAs and provide loans, credit insurance, and guarantees.

Extremophiles – creatures that can survive and reproduce in hostile environments. They thrive in environments that are too hot, cold, acidic, alkaline, or salty for most life forms.