What is 'Earning Assets' Earning assets are income-producing investments that are owned, or held, by a business, institution or individual. These assets also have a base value, but have the ability to produce additional funds, beyond this...
What is the ECB?
The European Central Bank (ECB) is the central bank of the European Union. Its main task is to maintain price stability in the euro area. The ECB was established on 1 June 1998, when it took...
What is 'Economic Blight' The visible and physical decline of a property, neighborhood or city due to a combination of economic downturns, residents and businesses leaving the area, and the cost of maintaining the quality of older...
What is 'Earnings Per Share - EPS' Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability....
What is 'Earnings Before Interest, Depreciation, Amortization and Exploration - EBIDAX' An earnings metric used in the evaluation of oil, gas and mineral firms. The metric is used in a similar manner to the way that EBITDA...
What is 'Early Exercise' The exercise of an option prior to its expiration date. Early exercise is only possible with American-style option contracts, which can be exercised at any time up to expiration, as opposed to European...
What is the 'Earnings Multiplier' The earnings multiplier is an adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used to discount future earnings, and allows investors to...
What is an ETF and how does it work
ETFs are exchange traded funds. ETFs are a type of investment fund that hold a basket of securities, such as stocks, bonds, or commodities, and trade on an exchange like a...
What is an earnout and how does it work
An earnout is a performance-based bonus that is paid out over time, typically in addition to a base salary. In order for an earnout to be paid, the employee must meet...
What is 'Economic Exposure'
A type of foreign exchange exposure caused by the effect of unexpected currency fluctuations on a company’s future cash flows. Also known as operating exposure, economic exposure can have a substantial impact on a company’s market...