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

Category: Finance Dictionary

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.

DEADWEIGHT DEBT

DEBT of a company that is used to fund operat- ing losses or service other debt rather than support productive invest- ment or ACQUISITIONS, or create incremental ENTERPRISE VALUE. Although the debt

DEBIT DATE

The date when money from an account is taken based on a debit. It is done when funds are there on the same day every month.

DEBT RESTRUCTURING FRAUD

When a company files for bankruptcy hiding its assets. The debt is reduced assuming that they have less to pay than they really do.

DECIPOL

The indoor air quality based on carbon dioxide and the fresh air available. The higher the number the more polluted. The ratio changes based on where the air comes from. It was

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