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

Category: E

EQUIPMENT PERFORMANCE DATA

Data collected on availability, maintainability, and reliability of systems, subsystems, and components of equipment and machinery. Retained historically, trended and reported as levels and ratios of performance.

EQUITY INDEX SWAP

An OVERTHECOUNTER SWAP involving the exchange of a floating INTEREST RATE for potential gains from the appreciation or depreciation of an EQUITY reference index (which may be a COMMON STOCK, a BASKET,

EQUITY RISK PREMIUM

Pre-set additional value or return given to an investor on demand for taking on the risk of the investment. Contrast this to a guaranteed return of a bond or as treasury certificates.

ERROR ACCOUNT

A temporary account that holds financial amounts whose final destination is unknown or uncertain due to some type of error or suspension of a transaction. Such accounting situations must be fixed immediately.

ESSENTIAL RECORD

Records that an organization requires to show how to execute its business. These vital records are critical to restore the organization from a disaster. Refer to disaster recovery.

ESTOPPEL BY SILENCE

When a party purposefully remains silent but is legally obliged to speak, a Legal ban is established.

EURO MEDIUM-TERM NOTE (EMTN)

A FIXED INCOME security issued by a company or sovereign entity in the EUROMARKETS from a standing program arranged by an UNDERWRITER; once the program is registered issuance can take place at

EUROPEAN COMMISSION

EU subsidiary. Accountable for EU treaty enforcement is the sole legislation-proposal group for EU, and conducts other executive actions. And 27 Commissioners that comprise the commission must act independently of their member

EVEN SPREAD

When the long position and short position of an option have equal premiums, the investor does not pay nor gain a premium.

EX PARTE ORDER

Court order against a party absent from the proceedings and given no prior notice.

EXCESS DEMAND

People wanting more of a product or service than a company can produce. Higher prices is the usual result of this condition. This condition can also be a planned marketing ploy, especially

EXCESSIVE WEAR AND TEAR CHARGE

Expense added to the cost of a rental or lease contract due to a quantity of dings, dents, dirt, interior stains and tears, and scratches above a subjective norm. Known also as

EXCLUSION OF WITNESSES

To keep witnesses from influencing other witnesses, witnesses are kept out of the courtroom unless giving testimony. Prevents witnesses from discussing testimony with other witnesses before giving testimony. Rule of evidence.

EXCULPATORY CLAUSE

An agreed-to condition (1) preventing blame or liability on one party due to the improper behavior of the other party; (2) preventing liability on one party due to not meeting all of

EXECUTIVE BRANCH

Operations and management arm of the Federal government. A primary branch in most democratic governments. Top executive in this branch is typically the Prime Minister, or President, as in the US. The

EXERCISE PRICE

Price of an option allowing call or put. The buyer must pay this price to the option writer in a call option. The writer of the option must pay this price to

EXPANDED ACCOUNTING EQUATION

Allows a more detail view of owner equity in a company. One calculates by subtracting liabilities and asset value remove from the company by this owner from total revenue to-date since ownership

EXPECTED MORTALITY

Mortality-table-based prediction of the likely, time-bound frequency of death in a specific group of people.

EXPERIMENTAL ECONOMICS

How an experiment is controlled when testing the affect of human behavior on the testing process.

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