Earnings Per Share (EPS)
Earnings per share is the portion of a company's net profit that belongs to each ordinary share. It converts total profit into a per-share figure so that results can be compared with the share price and across periods.
Investment & trading encyclopedia
Understand investment products, market mechanics, indicators and research terminology. Each entry includes an explanation, example, cautions and related learning.
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Equity
Equity is the residual ownership value of a business or asset after liabilities are subtracted. In markets, the word is also used for the asset class of company shares, as in equity markets or equity funds.
Exchange Rate
An exchange rate is the price of one currency expressed in another currency. It is set by supply and demand under a floating regime, or managed within limits by policy under a peg or band.
Exchange-Traded Fund (ETF)
An exchange-traded fund is an investment fund whose units are listed and traded on a stock exchange throughout the trading day, usually tracking an index, a sector or a basket of assets. It combines a pooled portfolio with the ability to buy and sell like a share.
Expense Ratio
The expense ratio is a fund's annual operating costs, such as management, administration and custody fees, expressed as a percentage of its average net assets. It is deducted from the fund's assets, so it lowers returns without appearing as a separate bill.
Expiration (Expiry)
Expiration is the date and time at which an option or futures contract ends, after which the holder's rights and obligations lapse or are settled. A European-style option can be exercised only at expiration, while an American-style option can be exercised at any time up to that deadline.