Stock Market Glossary  
 
 
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Earnings Per Share (EPS) EPS represents the portion of a company's profit allocated to each outstanding share of common stock. Net income (reported or estimated) for a period of time is divided by the total number of shares outstanding (TSO) during that period. (see Growth Rate Measures for EPS)
Earnings Report A statement - also called an income statement - issued by a company showing its earnings or losses over a given period. The earnings report lists the income earned, expenses and the net result. (see Balance Sheet)
Earnings Surprise

A company earnings report that differs(either positively or negatively) from what analysts were expecting (consensus forecast). This often causes movement in the stock's price. (see Consensus Rating)

Special symbols are used for negative actual or expected earnings as follows:

N+
 Negative actual earnings with positive surprise
N-
 Negative actual earnings with negative surprise
-+
 Negative consensus earnings with positive actual earnings
-0
 Negative consensus earnings with zero actual earnings
-VL
 Very large negative percent surprise
+VL
 Very large positive percent surprise
NA
 Not available (data necessary for calculation are not available)
Earnings Yield The ratio of Earnings Per Share after allowing for tax and interest payments on fixed interest debt, to the current share price. The inverse of the Price/Earnings ratio. It's the Total Twelve Months Earnings divided by number of outstanding shares, divided by the recent price, multiplied by 100. The end result is shown in percentage.
EBITDA Earnings before interest, taxes, depreciation, and amortization.
Economic Indicator A key statistic in the overall economy that experts use as a yardstick to predict the performance of the stock market.
EDGAR Electronic Data Gathering, Analysis, and Retrieval - An electronic system implemented by the SEC that is used by companies to transmit all documents required to be filed with the SEC in relation to corporate offerings and ongoing disclosure obligations. EDGAR became fully operational mid-1995.
Effective Annualized Seven-Day Yield Yield for 7 day period including the day reported, calculated by adding 1 to the base period return used in calculating the standard 7 day yield raising the total to the power of 365 divided by 7 and subtracting 1 (NOTE: To be reported on Wednesday only).
Ending Net Asset Value The market value of a fund share on a predetermined end date.
Equipment Trust Certificate A type of security, generally issued by a railroad, to pay for new equipment. Title to the equipment, such as a locomotive, is held by a trustee until the notes are paid off. An equipment trust certificate is usually secured by a first claim on the equipment.
Equity The ownership interest of common and preferred stockholders in a company.
European Style Options An option contract that can only be exercised on the expiration date. (see American Style Options)
Ex-Dividend A synonym for "without dividend." The buyer of a stock selling ex-dividend does not receive the recently declared dividend. Every dividend is payable on a fixed date to all shareholders recorded on the books of the company as of a previous date of record. For example, a dividend may be declared as E payable to holders of record on the books of the company on a given Friday. Since three business days are allowed for delivery of stock in a "regular way" transaction on the New York Stock Exchange, the Exchange would declare the stock "ex-dividend" as of the opening of the market on the preceding Wednesday. That means anyone who bought it on or after that Wednesday would not be entitled to that dividend. When stocks go ex-dividend, the stock tables include the symbol "x" following the name.
Ex-dividend Date The date on or after which a security begins trading without the dividend (cash or stock) included in the contract price. A stock that has gone ex-dividend is marked with an 'x' on that date.
Exchange The marketplace in which shares, options and futures on stocks, bonds, commodities and indices are traded. (see Nasdaq, NYSE, Amex)
Execution The process of completing an order to buy or sell securities. Once a trade is executed, it is reported by a Confirmation Report; settlement (payment and transfer of ownership) occurs in the U.S. between 1 (mutual funds) and 3 (stocks) days after an order is executed.
Exercise Action taken by an option holder that requires the writer to perform the terms of the contract.
Exercise Price The price at which an option may be exercised. Also called strike price.
Expense Ratio The percentage of the assets that were spent to run a mutual fund (as of the last annual statement). This includes expenses such as management and advisory fees, overhead costs and 12b-1 (distribution and advertising ) fees. The expense ratio does not include brokerage costs for trading the portfolio, although these are reported as a percentage of assets to the SEC by the funds in a Statement of Additional Information (SAI). the SAI is available to shareholders on request. Neither the expense ratio or the SAI includes the transaction costs of spreads, normally incurred in unlisted securities and foreign stocks. These two costs can add significantly to the reported expenses of a fund.
Expiration Cycle An expiration cycle relates to the dates on which options on a particular security expire. A given option will be placed in 1 of 3 cycles, the January cycle, the February cycle, or the March cycle. At any point in time, an option will have contracts with 4 expiration dates outstanding, 2 in near-term months and 2 in far-term months.
Expiration Date The date the option contract expires.
Ex-Rights Without the rights. Corporations raising additional money may do so by offering their stockholders the right to subscribe to new or additional stock, usually at a discount from the prevailing market price. The buyer of a stock selling ex-rights is not entitled to the rights. (see Ex-Dividend, Rights)
Extra The short form of "extra dividend." A dividend in the form of stock or cash in addition to the regular or usual dividend the company has been paying.