Economies of Scope A situation in an economy wherein one investment is able to support several profitable activities at a lower cost when they are grouped together than when undertaken singly. … [Read more...]
Archives for 2010
Economist
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Economist Experts who undertake studies of the society's resources and its relationship to production or output. These may be small local communities, nations or worldwide economies. The findings help design policies pertaining to interest rates, taxation, employment schemes, … [Read more...]
EDGAR
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EDGAR Stands for Electronic Data Gathering, Retrieval system. This system is used by the SEC to transmit documents required in filings by companies. … [Read more...]
Edge Corporations
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Edge Corporations Banking institutions, chartered by U.S. Federal Reserve and authorized by it. Such corporations carry out transactions with a foreign or worldwide characteristic. Interstate banking restrictions do not apply on such corporations. Foreign banks with operations in … [Read more...]
Effective Annual Interest Rate
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Effective Annual Interest Rate Yearly measure of money in terms of time value that reflects the compounding effects entirely. … [Read more...]
Effective Annual Yield
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Effective Annual Yield Rate of interest obtainable on securities, in annualized form, determined using techniques pertaining to compound interest calculations. … [Read more...]
Effective Call Price
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Effective Call Price In optional redemption provisions, strike price quoted in the option plus the interest accrued up to the date of redemption. … [Read more...]
Effective Convexity
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Effective Convexity Bond convexity calculated by making use of fund flows that fluctuate as yield changes. … [Read more...]
Effective Date
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Effective Date The date when a swap begins to accrue interest, in the context of interest rate swaps. … [Read more...]
Effective Debt
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Effective Debt The entire outstanding debt of a company. The figure also includes, in capitalized form, any regular payments made by the company in addition to standard debt borne by it. … [Read more...]
Effective Duration
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Effective Duration Calculation of duration for an embedded option bond through the formula for determining approximate duration. The duration thus calculated reflects the expectation of fluctuation in cash flow owing to the existence of the option. Evaluates the sensitivity of price … [Read more...]
Effective Margin (EM)
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Effective Margin (EM) Term used in measuring SAT performance. Refers to amount equaling the net spread earned/ margin of income derived from the assets that is earned above and beyond costs of financing for a particular given rate of prepayment and interest. … [Read more...]
Effective Rate
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Effective Rate Evaluation of money in terms of its time value when effects of interest rate compounding are fully reflected. … [Read more...]
Efficient Capital Market
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Efficient Capital Market Markets where the prices of shares accurately reflect fresh information immediately after such information is disseminated. … [Read more...]
Efficient Diversification
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Efficient Diversification Principle that states that risk-wary investors will look for the maximum expectation in terms of return for risk of any level in the portfolio. This principle forms the basis of modern portfolio theory. … [Read more...]
Effective Duration
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Effective Duration Calculation method for bonds with embedded options. Assumption is that expected cash flows will show fluctuation in sync with changes in interest rates. … [Read more...]
Efficient Frontier
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Efficient Frontier Grouping of portfolios built with securities that minimizes risk for expected return or maximizes return for expected risk level. … [Read more...]
Efficient Market Hypothesis
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Efficient Market Hypothesis Holds that every piece of pertinent information is completely and instantly reflected in the market price of a security thereby leading to the assumption that investors will derive equilibrium return rate. This means that investors should avoid … [Read more...]
Efficient Portfolio
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Efficient Portfolio Portfolio with the maximum expected return that can be derived for a specific risk, (that is, standard deviation), else the minimum possible risk that is unavoidable for a specific return that is expected. … [Read more...]
