What is 'Earnings Power' Earnings power is a business' ability to generate profit from conducting its operations. It is used to analyze stocks to assess whether the underlying company is worthy of investment. A company’s earnings power...
What is 'Earnings Before Interest & Tax - EBIT' An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as "operating earnings", "operating profit" and "profit before...
What is 'Early Withdrawal' The removal of funds from a fixed-term investment before the maturity date, or the removal of funds from a tax-deferred investment account or retirement savings account, such as an IRA or 401(k) before...
What is 'Earnings Allowance' Calculation on the net funds available in a checking account and the credit amount can be used to offset all or a portion of monthly service charges. The rate for the earnings allowance...
What is 'EBITDARM' A financial performance measure that stands for earnings before interest, taxes, depreciation, amortization, rent and management fees. EBITDARM is used in comparison to more common measures such as EBITDA when a company's rent and...
DefinitionEarnings per share is the monetary value of earnings per outstanding share of common stock for a company. Earnings Per Share - EPS Earnings Per Share or EPS is an important financial ratio. It is an important statistic as...
What is an 'ECN Broker' An ECN broker is a forex financial expert who uses electronic communications networks (ECNs) to provide its clients direct access to other participants in the currency markets. Because an ECN broker consolidates...
DefinitionIn economics, economic equilibrium is a state where economic forces such as supply and demand are balanced and in the absence of external influences the values of economic variables will not change. For example, in the standard textbook model...
What is 'Easy Money' Easy money, in academic terms, denotes a condition in the money supply. Easy money occurs when the U.S. Federal Reserve allows cash flow to build up within the banking system as this lowers...
DefinitionAn earnest payment is a specific form of security deposit made in some major transactions such as real estate dealings or required by some official procurement processes to demonstrate that the applicant is serious and willing to demonstrate an...