Glossary of Terms beginning with E

Click one of the letters above to go to the page of all terms beginning with that letter.
Earnings Per Share

The amount of earnings allocated to each share of a company’s outstanding stock. Example: 1 million shares outstanding and $2 million in profits would report $2 earnings per share.

Effective Rate

Yield on debt instrument as calculated from the purchase price. The effective rate on a bond is determined by the price, the coupon rate, the time between interest payments, and the time until maturity. Every bond’s effective rate thus depends on when it was bought. The effective rate is more meaningful yield figure than the coupon rate.

Emerging Markets

Security markets in countries that are still developing their industrial base. Investments in emerging markets entail substantial risk with the potential for above-average returns.


Endowment funds are funds given to the charitable organization with the donor-imposed restriction that the funds are not to be expended, but are to be invested for the purpose of producing income. Unless otherwise stated by the donor, the principal of the funds is to be maintained in perpetuity.

Endowment Current Income

The sum of equity dividends, bond interest, cash equivalent interest, rents, royalties, and other net cash flows earned by assets held in the endowment over a specified period of time; does not include principal appreciation.

Estate and Gift Tax

ATRA permanently extends a unified exemption for estate and gift tax purpose of $5.25M in 2013 (indexed for inflation). Tax rate increased from 34% to 40%.

Estate Planning

Planning for the management and disposition of all of an individual’s property at the individual’s death.

Estate Tax

An estate tax is levied on the total value of a deceased person's money and property and is paid out of the decedent’s assets before any distribution to beneficiaries. The key difference between estate and inheritance taxes lies in who is responsible for paying it.

Exchange Rate

The price at which one country’s currency can be converted into another country’s currency.


The male personal representative named in a will to settle the testator’s estate.


The female personal representative named in a will to settle the testator’s estate.

Externally Managed Assets

Assets, including pooled assets, managed by individuals or firms outside an institution.