Early Exercise
What is 'Early Exercise' The exercise of an option prior to its expiration date. Early exercise is only possible with American-style option...
Earnings Multiplier
What is the 'Earnings Multiplier' The earnings multiplier is an adjustment made to a company's P/E ratio that takes into account current...
ETF – Exchange Traded Funds
What is an ETF and how does it work
ETFs are exchange traded funds. ETFs are a type of investment fund that hold a basket...
Earnout
What is an earnout and how does it work
An earnout is a performance-based bonus that is paid out over time, typically in addition to...
Economic Exposure
What is 'Economic Exposure'
A type of foreign exchange exposure caused by the effect of unexpected currency fluctuations on a company’s future cash flows. Also...
Economic Calendar
DefinitionAn economic calendar is used by investors to monitor market-moving events, such as economic indicators and monetary policy decisions. Market-moving events, which are typically...
Earned Income
What is 'Earned Income' Earned income is income derived from active participation in a trade or business, including wages, salary, tips, commissions...
Econometrics
What is econometrics and what does it involve
Econometrics is the study of relationships between economic variables using statistical methods. It is concerned with the...
Efficient Market Hypothesis
DefinitionThe efficient-market hypothesis is a theory in financial economics that states that asset prices fully reflect all available information. A direct implication is that...
Earnings Management
What is earnings management and why do companies do it
Many publicly traded companies engage in a practice known as earnings management. This is the...