Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: E

ENTRY AGE

In general, the age someone registered for something can participate. Example: age an employee is payment-eligible in a pension plan, usually age 65.

ENVIRONMENTAL PROTECTION

Environmental guardianship based on policies and procedures. Objectives are (1) the conserving of natural resources, (2) the preserving of the existing natural environment and, (3) where possible, repairing damage and reversing trends.

EQUATION

A two-sided mathematical statement where the left and right side statements have equal value. Used to evaluate a value or identify the value of one or more variables in the equation. A

EQUITY CALL SWAP

An OVERTHECOUNTER SWAP involving the exchange of a floating INTEREST RATE for potential gains from the appreciation an EQUITY reference index (which may take the form of a single COMMON STOCK, a

EQUITY METHOD

The way investments in subsidiaries is tracked by a parent company. The profits and losses are posted on separate accounts for each subsidiary as a balance sheet. This begins from the time

EQUIVALENT BREAKEVEN

A measure of the number of years it takes for an investor to recover the initial CONVERSION PREMIUM paid in acquiring a CONVERTIBLE BOND, typically computed as: where Convprem is the conversion

ESCALATION CLAUSE

1. In Construction, this is an allowance to change the contracted price for labor, material, etc., based on a change in market prices or a consumer price index (CPI) as a benchmark.

ESTIMATED ULTIMATE RECOVERY (EUR)

Projected volume from a cache or reserve. Typically stated for oil or gas drilling. Drives prospective investments in an oil or gas exploration company. Used mainly by market sector analysts.

ETHICAL STANDARDS

Morality stated as principles. Intended to generate trust, good behavior, fairness, and kindness. Typically occurs in a corporate setting, for an organization.

EUROMARKET

Commonly known as Eurobond, Eurloan, and Euronote markets.

EUROPEAN UNION (EU)

A working collaborative of specific European countries. Addressing mutual concerns is the mission.

EVERY DAY LOW PRICES

Consistently lower-than-customary prices replace periodic promotional discounts as a trading practice.

EXCEEDANCE

Going beyond a specific set limit. Typically used with pollution, like pollutants in a waste stream, to describe violating a permitted level, count, or number.

EXCESS OF LOSS (XOL) AGREEMENT

A REINSURANCE arrangement where a REINSURER assumes RISKS and returns in specific horizontal or vertical layers; depending on the magnitude of losses and the sequence and level of ATTACHMENT a reinsurer may

EXCHANGE RATIO

The percentage of how many of a buying company’s shares are to be swapped for the shares of a company being bought.

EXCLUSIVE DISTRIBUTION

Agreed-to restriction allowing a specific seller/marketer/distributor to represent a particular line of goods of services to a specific market or retail area. An example is an new line of clothing being marketed

EXECUTIVE SEARCH

The actions of seeking to hire corporate officers, executives and other senior level management positions. Payment for the search is typically either by retainer or contingency. An industry has evolved around the

EXIT VISA

A document showing the authorization and permission given to the holder by the appropriate authorities for entering .

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