Exercising the Option

Exercising the Option Carrying out a buy or sell transaction on the option contract’s underlying asset. … [Read more...]

Exhaustion Gap

Exhaustion Gap Gap that is witnessed after a quick rise in price of a stock begins to trail off. Usually shows the declining demand for the stock. … [Read more...]

Exogenous Variable

Exogenous Variable Also termed parameter. Variables whose values are established externally and not in the model where they are used. … [Read more...]

Expectations Hypothesis Theories

Expectations Hypothesis Theories Theories pertaining to the term structure of rates of interest that include pure expectations theory, preferred habitat theory and liquidity theory. These theories state that each forward rate is equal to the future interest rate expected for the … [Read more...]

Expectations Theory of Forward Exchange Rates

Expectations Theory of Forward Exchange Rates Theory stating that the predicted future spot rate for foreign exchange T periods ahead in time and the prevailing T period forward exchange rate are equal. … [Read more...]

Expected Future Cash Flows

Expected Future Cash Flows Future cash flows projected so as to enable investment decisions. … [Read more...]

Expected Future Return

Expected Future Return Also termed expected return. Return expected to be generated in the future by an asset. … [Read more...]

Expected Return

Expected Return Return that is expected from risky assets. The expectation is based on probability distributions for the potential return rates. Equals some zero risk rate (normally derived from Treasury note rate or bond rate) and a risk premium in addition, multiplied by the … [Read more...]

Expected Return on Investment

Expected Return on Investment Refer: CAPM (capital asset pricing model). Return that can be expected to be earned on an investment. … [Read more...]

Expected Return-Beta Relationship

Expected Return-Beta Relationship Capital Asset Pricing model implication that a security’s risk premiums and beta are in proportion. … [Read more...]

Expected Utility

Expected Utility Refers to the utility that an entity or economy is expected to achieve under various circumstances. Calculated by considering the weighted average of all possible results under given circumstances, with weights being assigned by the probability, that any given event … [Read more...]

Expected Value

Expected Value Used with probability distributions. Denotes weighted averages of such distributions. … [Read more...]

Expense Ratio

Expense Ratio Also termed Operating Expense Ratio (OER). Shown in the latest annual statement as a percentage. Denotes the proportion of assets spent to operate a mutual fund. Encompasses fees relating to management and advisory services, overhead costs, distribution and marketing … [Read more...]

Expensed

Expensed Reduction of profit reported for a year by charging to an expense account, in accordance with practices pertaining to expenses incurred on items that do not have measurable worth beyond a one year period. … [Read more...]

Expiration

Expiration The point in time when the option contract ceases to exist. … [Read more...]

Expiration Cycle

Expiration Cycle The dates on which a specific security’s options expire. Any option is placed in one cycle of the following: January cycle, February cycle, or March cycle. At a given time, an option has contracts with 4 outstanding expiration dates with 2 of these falling in … [Read more...]

Expiration Date

Expiration Date Last exercise date of an option. For American style options, this term denotes the last date on which the option can be exercised, for European style options it denotes the only day on which it can be exercised. In case of stock options, the Saturday following the … [Read more...]

Expiration Time

Expiration Time The time beyond which an options contract is invalid. It gives a more accurate deadline to the contract than expiration date by specifying the time of the day. … [Read more...]

Ex-Dividend Date

Ex-Dividend Date First trading day when a seller has a right to claim the latest dividend announced instead of the buyer of the stock. The date is specified by the NYSE and followed by other exchanges in the U.S. At present, it is two business days before record date. An ‘X’ marking … [Read more...]

Export-Import Bank (Ex-Im Bank)

Export-Import Bank (Ex-Im Bank) A federal government agency that enables exports by providing trade credits to domestic companies. … [Read more...]