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

Category: E

EVACUATION PROCEDURE

Method for evacuating. States the reasons, how to conduct oneself during, and where to go to be clear of emergency actions and for roll call.

EVOLUTION

Change towards improving that which exists, preserving the good characteristics and losing any detrimental characteristics. Change is random, typically generationally slow, good or bad or deadly. Fossil research has led to a

EXCEPTIONAL ITEM

An accounting entry that is contrary to what is normal or expected, and may need some attention or rectification. An example is an unusually large cost or an unusually large revenue. The

EXCESS QUANTITY SUPPLIED

A condition where sellers have more quantity at a specific price than buyers will buy. This causes a surplus. Typically the price of the goods is higher than the equilibrium price where

EXCHANGE-TRADED FUND (ETF)

A MUTUAL FUND on a security, BASKET or index, that trades on an EXCHANGE with continuously quoted and constantly changing prices, and which provides investors with the ability to engage in SHORT

EXCLUSIVE LISTING

Formally agreed-to restriction allowing a real estate agent to be the sole marketer of a property, typically for a 3-month period. The property owner can sell to anyone the owner finds and

EXECUTED TRUST

A trust whose setup is complete such that the trustor is no longer need by the beneficiaries to enforce the bounds of the trust. Known also as completely constituted trust or perfect

EXOGENOUS VARIABLE

An external, independent variable having affect on a model, but not affected by the model. The model builder specified the variable but set no qualitative characteristics or value generation method. An exogenous

EXPECTATIONS THEORY

A theory of INTEREST RATES indicating that the expectations of investors influence the TERM STRUCTURE of rates. Thus, if investors expect future rates will be higher than current rates, the YIELD CURVE

EXPENDITURE METHOD

A method of economic forecasting. The technique of adding consumption, government spending, investment and exports together as a measure of gross domestic product (GDP).

EXPERIAN

Primary credit-reporting bureaus. One of the three best known.

EXPLANATION

Commentary that is made to clear up a subject to make linkages clear in a concept. Refer to definition and description.

EXTENDED DEATH BENEFIT

Group policy rule that pays life insurance benefits if the insured party is disabled from the time premiums are not paid until that person dies. It is also paid if the person

EXTENSION RISK

The loss of growing interest rates that slows the rate of principal payments on loans.

EXTRAPOLATION

Predicting an unknown from the known data. It uses history and the current population to predict growth. If the current situation is stable it is a good prediction method. Refer to interpolation.

ECONOMIC CAPITAL

CAPITAL resources that a company allocates internally to conduct its operations and support its RISKS (including FINANCIAL RISK and OPERATING RISK). Economic capital, which is a key measure of SOLVENCY, serves to

EFFICIENT MARKET HYPOTHESIS

A theory stating that financial markets reflect all publicly available information, suggesting that all investors have an equal opportunity to earn a given minimum return, and that it is not possible to

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