Economic Equilibrium
DefinitionIn economics, economic equilibrium is a state where economic forces such as supply and demand are balanced and in the absence of external influences the values of economic variables will not change. For example, in the standard textbook model of perfect competition, equilibrium occurs at the point at which quantity demanded and quantity supplied are equal. Market equilibrium in...
Easy Money
What is 'Easy Money' Easy money, in academic terms, denotes a condition in the money supply. Easy money occurs when the U.S. Federal Reserve allows cash flow to build up within the banking system as this lowers interest rates and makes it easier for banks and lenders to loan money. Therefore, borrowers can acquire money more easily...
Earnest Money
DefinitionAn earnest payment is a specific form of security deposit made in some major transactions such as real estate dealings or required by some official procurement processes to demonstrate that the applicant is serious and willing to demonstrate an earnest of good faith about wanting to complete the transaction. Earnest Money What is 'Earnest Money' Earnest money...
Earnings Call
DefinitionAn earnings call is a teleconference, or webcast, in which a public company discusses the financial results of a reporting period]. The name comes from earnings per share, the bottom line number in the income statement divided by the number of shares outstanding. The US-based National Investor Relations Institute says that 92% of companies represented by their members conduct...
Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring or Rent Costs (EBITDAR)
What is 'Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring or Rent Costs - EBITDAR' Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) is a non-GAAP indicator of a company's financial performance. Although EBITDAR does not appear on a company's balance sheet, it can be easily calculated using information from the balance sheet....
Economic Collapse
What is an economic collapse and how can it happen An economic collapse is a situation in which the economy of a country experiences a sudden, large drop in output and widespread increases in unemployment. A collapsing economy can be caused by several factors, including natural disasters, financial crises, political instability, and currency devaluation. When an economy collapses, the effects...
e-CBOT
What is e-CBOT and how does it work The e-CBOT system is a secure, electronic platform that allows users to trade financial instruments including commodities, currencies, and treasuries. The platform is designed to provide users with real-time market information and quotes, as well as the ability to execute trades quickly and efficiently. e-CBOT is regulated by the US Commodity Futures...
Economic Efficiency
DefinitionEconomic efficiency is, roughly speaking, a situation in which nothing can be improved without something else being hurt. Depending on the context, it is usually one of the following two related concepts... Economic Efficiency What is 'Economic Efficiency' Economic efficiency implies an economic state in which every resource is optimally allocated to serve each individual or entity...
Eat Your Own Dog Food
What is 'Eat Your Own Dog Food' A colloquialism that describes a company using its own products or services for its internal operations. The term is believed to have originated with Microsoft in the 1980s. While it was originally used in reference to software companies using their own internally-generated tools for software development, its usage has spread...
Echo Bubble
What is 'Echo Bubble' A post-bubble rally that becomes another, smaller bubble. The echo bubble usually occurs in the sector in which the preceding bubble was most prominent, but the echo is less dramatic. Explaining 'Echo Bubble' People point to the rally that occurred after the market crash of 1929 as an example of...