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

Category: E

EQUIPMENT FINANCING

Credit extended for business project tool purchases. Typically covers leasing, SBA and other government loans. Includes sale-and-leaseback, the raising of cash for equipment purchases by selling off collateralized existing equipment.

EQUITY PUT SWAP

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

ERASURE GUARANTEE

A guarantee made by an accredited institution that an investment vehicle’s term changes are legitimate. Synonymous to a notary public signing a document. An affiliated representative of the associated financial institution or

ESCROW ACCOUNT

1. In Accounting, this is a special account for holding specific monies for disbursement under specific conditions. 2. In Banking, this is a special account for holding specific monies for disbursement under

ESTIMATING RELATIONSHIP

Mathematical formula used in projecting a value based on other related variables. An example is projecting the cost of material consumed based on the number of hours worked and the number of

EURO

European Union currency, voted as a unified banking currency. The European Union (EU), except Britain, Denmark, and Greece use it as a national currency. Established January 1, 2002.

EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOP

An international development BANK created in 1990 to assist in the economic development of Central and Eastern European nations via infrastructure and project LOANS to private and public sector borrowers.

EVALUATION OF RISK

Periodic analysis of risk for acceptability decision to continue, measured against significance.

EX ALL

Means the shares buyer has no forthcoming dividend, rights shares, and scrip issue. Contrast to cum all.

EXCESS BAGGAGE

Overweight passenger luggage. More carry-ons that is allowed. Usually demands additional payment to the carrier and even shipping separately as freight or cargo.

EXCESS RETURN

Difference between higher return rate and a lower risk free rate. An example is a return rate is 5 percent and a risk free rate of 1.5 percent results in a investment’s

EXCISE STAMP

A stickie that is objective evidence that a tax has been paid for the sold product, typically alcohol and cigarettes.

EXECUTORY COST

Executory contract servicing expenses. An example is paying excise tax on a leased car.

EXORDIUM CLAUSE

A statement of self-identification and intent by the grantor in the opening clause of a will. The grantor introduces him/herself as the person whose will this is, identifies his/her residence at the

EXPECTED LOSS

The EXPECTED VALUE, or MEAN, of a statistical loss distribution function. The loss distribution function may be created to compute credit losses, INSURANCE losses, or other financial losses.

EXPENDITURE-BASED BUDGET

1. Using known paid expenses for goods and services to determine one’s budget. 2. Using known paid expenses for goods and services to generate a financial plan.

EXPERIENCE QUALITIES

Post-purchase and consumption evaluation of the way a service was provided. Points of courtesy, attention, and satisfaction are weighed.

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