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

Category: E

ESTIMATING SYSTEM

Characteristics and information used in projecting values, typically cost estimates. Information used is policies, procedures, practices, and available, reliable historical data.

EURO COMMERCIAL PAPER (ECP)

Short term, unsecured discount DEBT securities with maturities ranging from 1 to 360 days issued by companies in the EUROMARKETS. A SYNDICATE of DEALERS places ECP on a BEST EFFORTS basis; unlike

EUROPEAN CENTRAL BANK (ECB)

The central bank of the European Union (EU) area. Responsible for planning and rolling out the EU money-management polices. Organized January 1, 1999. This bank is independent from all EU countries and

EVALUATION PERIOD

Pre-determine duration for the collection of information to be used in a pre-determined analysis. An example is a quarterly money manager performance evaluation.

EX COUPON

No interest payment rights on the next payment date given on the purchase of a bond or preferred stock.

EXCESS CAPACITY

Having more capability to produce than is needed. Wonderful in war, but costly in manufacturing. Producing more can be a solution for reducing average costs.

EXCESS VALUE

Value declared for a shipment greater the carrier liability limit.

EXCLUSION

1. Something not covered, as in specific damage not covered in an auto policy. S 2. Something not included in an investigation or a tax. An example is an asset or income

EXCLUSIVE RIGHT TO SELL LISTING

Formally agreed-to restriction allowing a real estate agent to be the sole seller of a property, typically for a 3-month period. The property owner can find anyone, but must bring that prospective

EXECUTION RISK

The RISK of lowering ENTERPRISE VALUE by not being able to successfully gain entry into a new market, introduce a new product or service, or absorb a new acquisition.

EXOTIC CURRENCY

A currency that is not widely used in international trade and financial transactions and is thinly traded in the FOREIGN EXCHANGE markets; the general lack of LIQUIDITY can result in increased price

EXPECTED MONETARY VALUE

Total of the weighted payoffs as predicted outcomes related to one decision. The weightings relate to the likelihood, expressed as probabilities, of varied events generating the possible payoff. Mathematically, this is the

EXPENSE

Money spent or cost incurred in an organization’s efforts to generate revenue, representing the cost of doing business.

EXPERIENCE RATING

Actual claims in a previous by amount paid-out. Used a the basis for calculating upcoming premiums.

EXPLODED VIEW

An illustration of an item that is not assembled so that all parts are visible.

EXPORT MERCHANT

An importer that buys directly from a foreign party to repackage and sell the brand.

EXTERNAL VALIDITY

Whena generalization is amde from other studies that only have a part of the relevant population.

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