Earnings - Net income post-tax, showing the bottom line or profits of the business. Perhaps the most significant and carefully scrutinized statistic in a company's financial filings is its earnings. It displays a company's actual profitability in comparison to analyst forecasts, historical results, rivals' earnings, and peers' earnings in the same industry. Earnings are the primary factor in determining a public company's share price because they can only be applied in one of two ways: either investing them in the firm to boost future earnings, or paying dividends to owners.
Earnings call - Discussion of the financial performance of a publicly traded company during a specific reporting period, such as a quarter or a fiscal year, between management, analysts, investors, and the media. An earnings report, which provides a summary of the company's financial performance for the time, typically comes before an earnings call.
Electronic communication network (ECN) - A computerized system that automatically matches buy and sell orders for securities on the market. ECN trading is particularly useful, when investors from different geographical regions want to carry out a secure transaction without the aid of a third party.
Economic cycle - The fluctuations of the economy between times of expansion (growth) and contraction (recession) are referred to as the economic cycle. The present stage of the economic cycle can be determined using variables like gross domestic product (GDP), interest rates, total employment, and consumer expenditure. Given that it directly affects everything from stocks and bonds to profits and corporate earnings, understanding the economic cycle can assist firms and investors decide whether to invest and when to withdraw their funds.
Earnings before interest, taxes, and amortization (EBITA) - A metric that investors use as a gauge of a company's profitability. It is useful for comparing businesses within the same industry. In some circumstance, it may also offer a more realistic picture of the company's actual performance over time.
Elliot Wave theory - A technical analysis theory that is used to describe price movements in the financial market. Ralph Nelson Elliott developed the theory after observing and identifying recurring fractal wave patterns. Stock price movements and consumer behavior both exhibit waves. Waves patterns can be studies across multiple equities and industries, include stock price movements, commodity indices and even consumer behavior.
Energy sector - A category of the stock market that includes companies that produce or supply energy. Companies engaged in oil and gas drilling, refining, and exploration and development are included in the energy sector or industry. Integrated power utility firms using coal and renewable energy are also a part of the energy sector.
Environmental, social and governance (ESG) - An analysis method used by socially responsible investors to help them evaluate possible investments in an effort to increase long-term, risk-adjusted financial returns. Environmental criteria take into account a company's environmental protection efforts, such as corporate climate change policies including things like carbon emissions, environmental laws, water stress, and waste. The management of relationships with customers, suppliers, employees, and the communities in which it operates is examined under the social criteria. Governance refers to elements that affect how businesses and investee entities are managed and supervised, such as board composition and compensation, audits, internal control, and shareholders rights. Regardless of whether a strategy has a sustainable mandate, environmental, social, and governance (ESG) integration is the process of incorporating ESG information into investing choices to assist improve risk-adjusted returns. ESG and "sustainable investing" are terms that are frequently used interchangeably.
Earnings per Share (EPS) - A portion of company's profit that is allocated among all outstanding shares of common stock. The profitability of a corporation is shown by EPS.
Equities - Shares of stock that a corporation issues to signify ownership. Ownership of real estate, as opposed to fixed-income products like bonds or mortgages, typically in the form of common stocks. Depending on the fund's investing aim, stock funds can differ.
Equity fund - A collective or mutual fund where the money is predominantly invested in common and/or preferred shares. Stock funds can differ, depending on the fund's investing aim and objective.
Ethereum (ETH) - Ethereum is a decentralized blockchain platform that creates a peer-to-peer network for safely executing and validating smart contract application code. Participants can do business with one another using smart contracts without the need for a reliable central authority. Participants have complete ownership and visibility over transaction data since transaction records are immutable, verifiable, and securely distributed across the network. Ethereum accounts that users have created both send and receive transactions. The transactional token that makes use of the Ethereum network is called Ether (ETH), Ethereum's native cryptocurrency. Anyone can use Ethereum to develop any secure digital technology. There is a token built into it specifically for usage on the blockchain network, but users may also use it to pay for tasks done on the blockchain. Network users need to use Ether as payment in order to carry out their requested actions on the network.
Evening star - Bearish candlestick pattern used to identify when a trend is ready to change direction. Three candles make up the pattern: a large green candle, a small candle with a long upper shadow (the color can be either green or red), and a large red candle. A peak in a price uptrend and the appearance of evening star patterns both indicate that the uptrend is about to end. The morning star pattern, which is seen as a bullish indication, is the opposite of the evening star pattern.
Exchange ratio - Proportion number of new shares given to existing shareholders of a company that has been acquired or merged with another. Following the delivery of the old company shares, the exchange ratio is used to provide shareholders with the same relative value in new shares of the merged entity.
Exchange-Traded Fund (ETF) - A pooled investment security that functions very similarly to a mutual fund. ETFs often follow a certain sector, index, commodity, or other asset, but unlike mutual funds, they can be bought or sold on a stock exchange just like normal stocks can. Anything can be tracked by an ETF, from the price of a single commodity to a sizable and varied group of securities. ETFs may even be designed to follow particular investment strategies such as shorts selling.
Exclusions - A method of investing that uses a set of values, or norms-based criteria to remove certain assets or classes of investments from the investment universe. A sustainable investment approach that eliminates from a fund or portfolio certain industries, businesses, or business practices based on particular principles or norms. For instance, certain sectors can be purposefully left out of investment, such as the financials, tobaccos, or biotech.
Ex-Dividend - A stock is referred to as being ex-dividend if it no longer carries the value of the upcoming dividend payment. The day the stock begins trading without the value of its upcoming dividend payment is known as the ex-dividend date or "ex-date." An investor who purchases a stock on or after the ex-dividend date will not be entitled to the declared dividend. Typically, the ex-dividend date for a stock is one business day before the record date. Instead, whoever owned the stock on the day before the ex-dividend date receives the dividend payout.
Ex-Dividend date - The day that a stock becomes exempt from dividends. Before the dividend is distributed to shareholders of record, there are typically three weeks.
Exchange privilege - The right granted to shareholders of mutual funds to switch their investment from one fund to another within the same fund family. This permission can be applied to many market tactics.
Expense ratio (ER) - An expense ratio (ER), commonly referred to as the management expense ratio (MER), calculates the percentage of assets utilized for management and other operational costs in a fund. By dividing a fund's operating costs by the average dollar amount of its managed assets, an expense ratio is calculated (AUM). The assets of the fund are diminished by operating costs, which lowers the return to investors.
Expense ratio (date) - Amount that shareholders pay annually for management and running costs of mutual funds, stated as a percentage of the entire investment.
Exponential Moving Average (EMA) - Technical indicator that tracks an investment's price over time (such as the price of a stock or commodity). An example of a weighted moving average (WMA) is the exponential moving average (EMA), which lends more significance to recent price data. The EMA, like the simple moving average (SMA), is used to track price movements over time, and moving average ribbons make it easier to keep an eye on multiple EMAs at once.
Extended trading - Trading done by electronic networks outside of the exchange's regular trading hours, either before the opening or after the close. The extended trading hours usually has a lower volume compared to the regular trading hours when the exchange is open. Pre-market trading for equities often takes place in the United States between 4:00 and 9:30 a.m. Eastern Time, while after-hours trading typically occurs between 4:00 and 8:00 p.m. Eastern Time (EST). The regular hours of operation for the US stock markets are 9:30 am to 4:00 pm EST.