Economic Integration
DefinitionEconomic integration is the unification of economic policies between different states through the partial or full abolition of tariff and non-tariff restrictions on trade taking place among them prior to their integration. This is meant in turn to lead to lower prices for distributors and consumers with the goal of increasing the level of welfare, while leading to an...
Enterprise Value
DefinitionEnterprise value, total enterprise value, or firm value is an economic measure reflecting the market value of a business. It is a sum of claims by all claimants: creditors and shareholders. Enterprise value is one of the fundamental metrics used in business valuation, financial modeling, accounting, portfolio analysis, and risk analysis. Enterprise Value Enterprise Value, or EV as it...
Eat Well, Sleep Well
What is 'Eat Well, Sleep Well' An adage that, referring to the risk/return trade-off, says that the type of security an investor chooses depends on whether he or she wants to eat well or sleep well. Explaining 'Eat Well, Sleep Well' Investing in high-risk, high-reward securities will offer you the potential to eat well,...
Each Way
What is 'Each Way' A slang phrase used when a broker earns commissions from both parties in a security sale. The purchaser and the seller of the security will pay a fee to the broker for facilitating the transaction. Explaining 'Each Way' Going each way on a trade is ideal for a broker. When...
Earnings Recast
What is 'Earnings Recast' The act of amending and re-releasing a previously released earnings statement, with specified intent. Some of the most typical reasons for recasting earnings are to show the impact of a discontinued business or to separate out earnings-related events that are deemed to be non-recurring or otherwise non-representative of normal business earnings. Also...
Economic Forecasting
DefinitionEconomic forecasting is the process of making predictions about the economy. Forecasts can be carried out at a high level of aggregation—for example for GDP, inflation, unemployment or the fiscal deficit—or at a more disaggregated level, for specific sectors of the economy or even specific firms. Economic Forecasting What is 'Economic Forecasting' The process of attempting to...
Earnings Season
What is 'Earnings Season' Earnings season are the months of the year in which a majority of quarterly corporate earnings are released to the public. Earnings season is generally accepted as the months immediately following the quarter-ends of the year, which means that earnings seasons would fall in January, April, July and October. This is due to...
Earnings Announcement
What is 'Earnings Announcement' Earnings announcement is an official public statement of a company's profitability for a specific time period, typically a quarter or a year. An earnings announcement is typically made on a specific date during earnings season and is preceded by earnings estimates issued by equity analysts. When the company has been profitable leading up...
Economic Growth Rate
DefinitionEconomic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Economic Growth Rate What is an 'Economic Growth Rate' An economic growth rate is a measure of economic...
Economic Derivative
What is an 'Economic Derivative' An economic derivative is a relatively new form of derivative contract (the first ones were traded in 2002) that is based on the future value of some national economic indicator, such as non-farm payrolls, the purchasing manager's index, retail sales levels and the gross domestic product. Most of these economic derivatives are...