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

DUTCH AUCTION PREFERRED STOCK

ADJUSTABLE RATE PREFERRED STOCK with a floating DIVIDEND that is reset every 49 days through a DUTCH AUCTION process. Also known as AUCTION RATE PREFERRED STOCK.

DWARF

A15 year MORTGAGEBACKED SECURITY issued by the FEDERAL NATIONAL MORTGAGE ASSOCIATION. See also GNOME, MIDGET.

EARNINGS PER SHARE (EPS)

The amount of net income earned by a company, after PREFERRED STOCK DIVIDENDS have been distributed, which is attributable to each outstanding share of COMMON STOCK. The EPS measure is used as

ECONOMIC CAPITAL

CAPITAL resources that a company allocates internally to conduct its operations and support its RISKS (including FINANCIAL RISK and OPERATING RISK). Economic capital, which is a key measure of SOLVENCY, serves to

EDGE ACT BANK

A US banking entity, owned by a state or nationallychartered BANK, with an international business scope. Edge Act banks are authorized to operate interstate branches, accept DEPOSITS from offshore sources, invest in

EDUCATIONAL FUND

As a part of a life insurance policy, upon the family’s breadwinner death, money for a child’s education is supplied by this fund.

EFFECTIVE BUYING INCOME

The amount of money a taxpayer has on income from wages, interest, and other income minus what is taken out be taxes and other deductions such as FICA.

EFFECTIVE REACH

The number of buyers versus targeted audience, as a percentage. It measures the exposure to a particular ad over a specific period, to achieve a specific level of purchase of a product

EFFECTIVE YIELD

The actual INTEREST RATE an investor earns on an investment after taking into account fees, actual price paid, and AMORTIZATION of PRINCIPAL or ACCRETION OF DISCOUNT. See also EFFECTIVE RATE.

EFFICACY

1. Effectiveness. Likelihood of achieving desired end by expending effort. Example: Evaluate changes for their efficacy to produce desired result; if unsure the changes will do the job, reevaluate our plan. 2.

EFFICIENCY

The measure of the cost of an approach and its achievement versus expectation. A classic measure in determining productivity. See effectiveness.

EFFICIENCY ENGINEER

Person accountable for the cycle of improving the effectiveness of machinery and personnel through analysis and application. Often a management level individual holds this responsibility.

EFFICIENCY FACTOR

Ratio calculated as the number of hours used to successfully achieve a goal divided by the documented number of hours expected to be spent on a job or activity.

EFFICIENCY PRINCIPLE

An economic theory that states that the maximum social benefit that is received from any type of action is received when the marginal social costs of resource allocation is equal to the

EFFICIENCY RATIO

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

EFFICIENCY WAGE

Wage higher than market that raises worker morale to achieve higher output and discourage absenteeism and inventory shrinkage.

EFFICIENT FRONTIER

Achieving the best risk-to-reward ratio for a given asset under existing circumstances. Maximum return from minimum risk result.

EFFICIENT MARKET

Market where immediate response to information occurs, typically in terms of price increase and decrease, as in a stock market. Based on an alleged sense of fair play where all pertinent information

Topic Archives:

Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.