Earnings Per Share

Gross profit of a company (less taxes and obligations to preference shares and bond holders), divided by the company's paid-up capital. It shows how much a company had earned on its ordinary shares.

Efficient Market Hypothesis

A hypothesis which states that the price of a security is a reflection of all available information about it and thus represents its true value. It states also that the current price of a security is the most appropriate measure of future returns.

Equity Ownership

Capital held by individuals, corporate bodies and sometimes governments in a company. Also called ordinary shares.

Equity Capital

Monies supplied to a company by persons and institutions having ownership interest in it.

Equity Financing

The issuance of shares to generate money to finance a company's planned projects and/or working capital.

Euro-Bond

An international bond issue sold in countries other than the one in whose currency the instrument is denominated e.g. US dollar-denominated bond sold outside the United States.

Ex-Dividend Without dividend

The buyer of a security marked ex-dividend will not be entitled to receive current or impending dividend of the company whose securities were bought.

Exchange-Traded Derivatives

Derivative products which are traded on a securities or futures exchange. 108 Exercise Price The price at which the underlying securities of an option can be bought or sold by the holder of the option during a stated period. 109 Expiration Date The date of maturity of an option contract.

Extra-Ordinary General Meeting

A special meeting of the shareholders of a company ordered by the board of directors to discuss specific issues of concern to the company.