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

Category: E

EUROJUNK

European issued junk bonds. The Virgin Group is an example of an issuer.

EUROPEAN OPTION

Expiration-date execution is the defining characteristic of this type of option. Contrast to an American option; execution can occur any time before and on expiration date. The average price of the underlying

EVERGREEN CONTRACT

Automatically renewed, rollover agreement every maturity period. Continues unless any involved party cancels the agreement.

EX-ALL

A share of COMMON STOCK that lacks DIVIDEND rights and voting rights and is only entitled to possible capital appreciation.

EXCESS LINE BROKER

A broker licensed to work with insurance companies not licensed in the broker’s state.

EXCHANGE OF SIMILAR NONMONETARY ASSETS

Swapping assets that are very much alike, like land in one state for very similar land in another state. Both instruments in the swap have similar significant value.

EXCLUSIVE ASSORTMENT

Restricting a particular line of goods or services to a particular market or area for promotional purposes. Typically done by a single manufacturer to specific retailers or marketers/ merchandisers.

EX-DATE

The point in time after which the share buyer has no rights to dividends in this cycle. Prior and on this date dividend rights exist. This date is typically set as two

EXECUTIVE ORDER

Directive action from a prime minister or president to its executive governmental agencies in an official document .

EXIT OPTION

The right to terminate. Triggered by documented conditions. Usually a documented event based on specific criteria. An example is the termination of a project before completion because technology being used has become

EXPATRIATE

Citizen of country A living in country B. Classification of this citizen occurs regardless if the citizen has a short stay or an extended or lifetime stay in country B.

EXPENSE RECOVERY

An action to recover money spent by an employee or over-paid on a bill or claim. It is undertaken by a company to recover money from another company or employee. Recognition often

EXPIRATION CARD

The way the end date is noted on a contract. It is used to remind the agent of policies that need renewal.

EXPONENTIAL GROWTH

Increasing number or size at a constant rate. It is a possible result of the reinforcing feedback loop. It causes population or system growth.

EXPORTER’S SALE PRICE

The term for foreign goods to be sold to the US. Its done to allows a comparison with market value or similar goods to prevent dumping.

EXTENDIBLE OPTION

An OVERTHECOUNTER COMPLEX OPTION that allows the buyer to EXERCISE the contract on a particular reset date or reset the STRIKE PRICE to the current market level and extend the option for

EXTERNAL EQUITY

The way an employee percieves their condtions and the rewards of working at the firm compared to other firms.

EFFICIENCY RATIO

The measurement of how well a company manages profit versus costs. Accounts receivable and payable are the source for this measuring.

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