| Word |
Synonym / Acronym |
Definition |
| Earned Income |
|
Compensation received for providing goods or services, which includes salaries, commissions, and fees for consulting. |
| Effective Duration |
Adjusted Duration |
Duration that assumes yield changes do affect cash flow and also accounts for features or options. |
| Efficient Frontier |
|
A graph of the optimal portfolios comparing risk and return |
| Emerging Growth Stocks |
|
Issues of a company characterized by the company's stage in the life cylcle poised for the most dramatic growth. |
| Emerging Market Country |
|
A country having at least one if not all of the following: 1) Low per capita income 2) primitive or nonexistant securities market 3) economies that are not fully industrialized. |
| Employer Sponsored Nonqualified Retirement Plan |
|
A nonqualified investment plan which is provided through an employer, but does NOT meet the requirements of ERISA or the IRS. Such plans do not have to be made available to all employees. Contribution to this type of plan are not tax-deferred unless they are through an IRA. |
| Employer-Sponsored Qualified Retirement Plan |
|
A qualified investment plan which is written and meets te requirements of ERISA. |
| Employment Retirement Income Security Act |
ERISA |
An act outlined in the tax code establishing requirements for qualified employer sponsored plans with three key elements including an eligibility requirement, a vesting requirement, and fiduciary guidelines. Established to help prevent the misuse and mismangement of pension plan funds. |
| Equipment Trust Certificates |
|
Bond issues that are secured by a specific piece of equipment. |
| Equity Income Fund |
|
A mutual fund whose primary objective is the production of income |
| Estate |
|
The total assets and liabilities of a deceased person. Note that the throwback rule does not apply to an estate. Any income that the estate produces before the assets are distributed to the heirs are taxes to the estate only. |
| Exchange Market |
Exchange |
A membership association disigned to facilitate securities trading among its members primarily on a physical trading floor |
| Ex-dividend |
|
A stock sale where the buyer is NOT entitled to receive the stock's next dividend. |
| Ex-dividend Date |
|
The second business day prior to the stock's record date. |
| Exector (Executrix) |
Administrator (Administratrix) |
The person in charge of administering the property of an estate. |
| Expected Return |
|
The possible return on investment weighted by the likelihood that the return will occur. Part of Modern Portfolio Theory. |
| Expense Ratio (re: Mutual Fund) |
|
(Expense Ratio) = (Total Expenses) / Average Net Assets) |
