Terms Starting with E

Earnest money is a deposit made by a buyer to a seller, demonstrating commitment to a real estate transaction.

Earnings Before Interest and Taxes (EBIT) is a financial metric that calculates a company's profitability by excluding interest and tax expenses.

EBITDA is a financial metric used to evaluate a company's operating performance by excluding the effects of financing decisions, accounting decisions, and tax environments.

Earnings Per Share (EPS) is a financial metric used to measure the profitability of a company on a per-share basis, indicating how much money a company makes for each share of its stock.

EBITA stands for Earnings Before Interest, Taxes, and Amortization, a financial metric used to evaluate a company's operating performance without the effects of financial and accounting decisions.

Economic growth refers to the increase in the production of economic goods and services, compared from one period of time to another.

An economic moat refers to a business's ability to maintain competitive advantages over its competitors in order to protect its long-term profits and market share.

Economics is the social science that studies the production, distribution, and consumption of goods and services, focusing on how individuals, businesses, governments, and nations make choices about allocating resources.

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

A savings account set aside specifically for unexpected expenses or financial emergencies.

An Employee Stock Ownership Plan (ESOP) is a retirement plan that allows employees to own a stake in the company they work for, typically through the acquisition of company stock.

An endowment fund is a financial asset, often set up by a nonprofit organization, that uses the investment income from donations to fund ongoing operations or specific initiatives.

Enterprise Resource Planning (ERP) is a type of software used by organizations to manage and integrate the important parts of their businesses. An ERP software system can integrate planning, purchasing inventory, sales, marketing, finance, human resources, and more.

Enterprise Value (EV) is a measure of a company's total value, often used in the valuation of companies to assess their worth including debt and excluding cash.

An entrepreneur is an individual who starts and manages a business, taking on financial risks in the hope of profit.

The Environmental Protection Agency (EPA) is a U.S. federal agency responsible for protecting human health and the environment by enforcing regulations based on laws passed by Congress.

ESG criteria are standards for a company's operations that socially conscious investors use to screen potential investments based on environmental, social, and governance practices.

Equity represents ownership value in an asset or a company, typically expressed as the difference between the asset's value and the liabilities associated with it.

Equivalent Annual Cost (EAC) is a financial metric used to compare the annual costs of different investment projects over their lifespans, assuming each has a different lifespan.

Escrow is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction.

The European Union (EU) is a political and economic union of 27 European countries that operates a single market allowing free movement of goods, services, capital, and people.

Ex-dividend refers to the period after which a declared dividend belongs to the seller rather than the buyer of a stock.

An exchange is a marketplace where securities, commodities, derivatives, and other financial instruments are traded.

An exchange rate is the value of one currency for the purpose of conversion to another. It indicates how much one currency is worth in terms of another.

An externality is an economic term for a cost or benefit that affects a party who did not choose to incur that cost or benefit.