eCash
DefinitionEcash was conceived by David Chaum as an anonymous cryptographic electronic money or electronic cash system in 1983. It was realized through his corporation Digicash and used as micropayment system at one US bank from 1995 to 1998. eCash What is 'eCash' An Internet-based system that allows funds to be transferred anonymously. Similar to credit cards, eCash...
Earnings Power
What is 'Earnings Power' Earnings power is a business' ability to generate profit from conducting its operations. It is used to analyze stocks to assess whether the underlying company is worthy of investment. A company’s earnings power is a reflection of the ability to generate income or profits over time, assuming all current operational conditions remain constant....
Earnings Before Interest & Tax (EBIT)
What is 'Earnings Before Interest & Tax - EBIT' An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as "operating earnings", "operating profit" and "profit before interest and taxes (PBIT)." Explaining 'Earnings Before Interest & Tax - EBIT' EBIT measures the profit a...
Early Withdrawal
What is 'Early Withdrawal' The removal of funds from a fixed-term investment before the maturity date, or the removal of funds from a tax-deferred investment account or retirement savings account, such as an IRA or 401(k) before a prescribed time. Early withdrawal could be anything earlier than the account owner's attainment of a prescribed minimum age requirement,...
Earnings Allowance
What is 'Earnings Allowance' Calculation on the net funds available in a checking account and the credit amount can be used to offset all or a portion of monthly service charges. The rate for the earnings allowance is set at the bank's discretion. Explaining 'Earnings Allowance' The earnings allowance, or...
EBITDARM
What is 'EBITDARM' A financial performance measure that stands for earnings before interest, taxes, depreciation, amortization, rent and management fees. EBITDARM is used in comparison to more common measures such as EBITDA when a company's rent and management fees represent a larger-than-normal percentage of operating costs. Explaining 'EBITDARM' EBITDARM is not...
Earnings Per Share – EPS
DefinitionEarnings per share is the monetary value of earnings per outstanding share of common stock for a company. Earnings Per Share - EPS Earnings Per Share or EPS is an important financial ratio. It is an important statistic as it shows the efficiency of an organization to use its available assets to generate profits for the shareholders. It is...
ECN Broker
What is an 'ECN Broker' An ECN broker is a forex financial expert who uses electronic communications networks (ECNs) to provide its clients direct access to other participants in the currency markets. Because an ECN broker consolidates price quotations from several market participants, it can generally offer its clients tighter bid/ask spreads than would be otherwise available...
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...