Super Finance Glossary
Over 10,000 financial glossary terms...
If you want to refine these results, please use the search box.
Hint: Not sure how the word is listed? Just enter the first few letters.
Hint: Not sure how the word is listed? Just enter the first few letters.
Browsing by the letter "E"
Displaying next 100 results of 460
Effective Call Price
Definition: The strike price in a market redemption provision plus the accrued interest to the redemption date.
Definition: The strike price in a market redemption provision plus the accrued interest to the redemption date.
Effective Convexity
Definition: The convexity of a bond calculated using cash flows that change with yields.
Definition: The convexity of a bond calculated using cash flows that change with yields.
Effective Date
Definition: In an interest rate swap, the date the swap begins accruing interest.
Definition: In an interest rate swap, the date the swap begins accruing interest.
Effective Duration
Definition: The duration calculated using the approximate duration formula for a bond with an embedded option, reflecting the expected change in the cash flow caused by the option. Measures the responsiveness of a bond's price - taking into account that expected cash flows will change as interest rates change due to the embedded option.
Definition: The duration calculated using the approximate duration formula for a bond with an embedded option, reflecting the expected change in the cash flow caused by the option. Measures the responsiveness of a bond's price - taking into account that expected cash flows will change as interest rates change due to the embedded option.
Effective Interest Rate
Definition: The annual rate at which an investment grows in value when interest is credited more often than once a year.
Definition: The annual rate at which an investment grows in value when interest is credited more often than once a year.
Effective Margin (EM)
Definition: Used with SAT performance measures, the amount equal to the net earned spread, or margin of income, on assets in excess of financing costs for a given interest rate and prepayment rate scenario.
Definition: Used with SAT performance measures, the amount equal to the net earned spread, or margin of income, on assets in excess of financing costs for a given interest rate and prepayment rate scenario.
Effective Rate
Definition: A measure of the time value of money that fully reflects the effects of compounding.
Definition: A measure of the time value of money that fully reflects the effects of compounding.
Effective Sale
Definition: A sale based on the most recent round-lot price, which determines the price of the next odd lot. The difference created between the last round-lot price and the odd-lot price is referred to as the odd-lot differential.
Definition: A sale based on the most recent round-lot price, which determines the price of the next odd lot. The difference created between the last round-lot price and the odd-lot price is referred to as the odd-lot differential.
Effective Spread
Definition: The gross underwriting spread adjusted for the impact that a common stock offering's announcement has on the firm's share price.
Definition: The gross underwriting spread adjusted for the impact that a common stock offering's announcement has on the firm's share price.
Effective Tax Rate
Definition: The net rate a taxpayer pays on income that includes all forms of taxes. It is calculated by dividing the total tax paid by taxable income.
Definition: The net rate a taxpayer pays on income that includes all forms of taxes. It is calculated by dividing the total tax paid by taxable income.
Effective Yield
Definition: Yield or return on a short-term investment after adjustment for the change in exchange rates over the period of concern.
Definition: Yield or return on a short-term investment after adjustment for the change in exchange rates over the period of concern.
Efficiency
Definition: The degree and speed with which a market accurately incorporates information into prices.
Definition: The degree and speed with which a market accurately incorporates information into prices.
Efficient Capital Market
Definition: A market in which new information is very quickly reflected accurately in share prices.
Definition: A market in which new information is very quickly reflected accurately in share prices.
Efficient Diversification
Definition: The organizing principle of portfolio theory, which maintains that any risk-averse investor will search for the highest expected return for any particular level of portfolio risk.
Definition: The organizing principle of portfolio theory, which maintains that any risk-averse investor will search for the highest expected return for any particular level of portfolio risk.
Efficient Frontier
Definition: The combinations of securities portfolios that maximize expected return for any level of expected risk, or that minimizes expected risk for any level of expected return. Pioneered by Harry Markowitz.
Definition: The combinations of securities portfolios that maximize expected return for any level of expected risk, or that minimizes expected risk for any level of expected return. Pioneered by Harry Markowitz.
Efficient Market
Definition: Market in which prices correctly reflect all relevant information.
Definition: Market in which prices correctly reflect all relevant information.
Efficient Market Hypothesis
Definition: States that all relevant information is fully and immediately reflected in a security's market price, thereby assuming that an investor will obtain an equilibrium rate of return. In other words, an investor should not expect to earn an abnormal return (above the market return) through either technical analysis or fundamental analysis. Three forms of efficient market hypothesis exist: weak form (stock prices reflect all past information in prices), semistrong form (stock prices reflect all past and current publicly available information), and strong form (stock prices reflect all relevant information, including information not yet disclosed to the general public, such as insider information).
Definition: States that all relevant information is fully and immediately reflected in a security's market price, thereby assuming that an investor will obtain an equilibrium rate of return. In other words, an investor should not expect to earn an abnormal return (above the market return) through either technical analysis or fundamental analysis. Three forms of efficient market hypothesis exist: weak form (stock prices reflect all past information in prices), semistrong form (stock prices reflect all past and current publicly available information), and strong form (stock prices reflect all relevant information, including information not yet disclosed to the general public, such as insider information).
Efficient Markets Theory (EMT)
Definition: Principle that all assets are correctly priced by the market, and that there are no bargains.
Definition: Principle that all assets are correctly priced by the market, and that there are no bargains.
Previous
Next
