Here are Finance dictionary terms beginning with E.

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Earnings  the profits of a company over a specified period of time usually after tax.

Earnings Yield  earnings per share (net of tax) as a percentage of the share price.

Efficient Market Hypothesis (EMH)  a theory that says security prices reflect all available information thus making it difficult for investors to make abnormal returns.

Emerging Market  the market of a country which is experiencing rapid economic growth but whose income per capita usually makes it a low to middle income economy.

Equity  shares which represent ownership of a company. Equity holders may receive dividends and will make or lose money if the shares appreciate or depreciate in value.

Equity Risk Premium  the expected excess return above the risk-free rate of interest which is required to compensate for the riskiness of investing in shares.

EUREX  the European Exchange which is a merger of the German DTB exchange and the Swiss SOFFEX exchange.

Euro Libor  the London interbank offer (lending) interest rate on the Euro.

Eurobond  a bond denominated in a different currency to the country of issue, e.g. a dollar bond issued in London is a dollar denominated Eurobond.

Eurocurrency  a short term deposit/loan made outside of the country of that currency, for example, a 3 month yen deposit/loan made in London.

Eurodollar  a short term deposit or loan made in dollars outside the United States.

Eurobank  a bank that specializes in making short-term deposits and loans in a variety of foreign currencies.

European Option  an option that can only be exercised upon maturity.

Exchange Rate  the rate at which one currency can be exchanged for another.

Exercise Price  the price at which an option may be exercised. Also known as the strike price.

Exotic Option  an option which has special features compared to standard put/call options.

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