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

Category: Finance Dictionary

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.

EXPLODING OPTION

A BULL SPREAD or BEAR SPREAD that generates a payoff once the two STRIKE PRICES defining the SPREAD are breached i.e., the spread

EXPORT PROMOTION

An incentive program that attracts firms into exporting. Help is offered to get their business and promote it.

EXTERNAL CONTROL

Measures that affect the company operations that are imposed by the government or another organization. It is a rule that affects the company and involves taxes as well.

EXTERNALITIES

A factor those benefits and costs are not recorded on the market prices.

EXTRUSION

The process of using blank metal or plastic being forced through a metal piece or die to make a single ribbon.

DATA RECOVERY

Restoring the data stored in lost files. The space is not overwritten leaving it recoverable by the undelete program. Software is written to do this and is needed for recovery. AKA data

DAY TRADING

he process of actively buying and selling securities throughout the day but holding little or no open position at market close; the practice was initially popularized by the advent of ELEC- TRONIC

DE FACTO CORPORATION

A firm that isn’t de jure corporation. It can be treated as such due to promoters that attempt to incorporate.

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