Stock market terms starting with E

European Option Derivatives, Futures & Options qualitative An option that may be exercised only on its expiry date, not before. Test: exercise is permitted only at expiry; the holder may still close the position by selling it in the market at any time

EV to EBITDA Fundamental Analysis & Valuation ratio (x, times) Enterprise value divided by EBITDA, valuing the whole business against its operating cash generation before capital charges. EV/EBITDA = Enterprise Value / EBITDA

EV to Sales Fundamental Analysis & Valuation ratio (x, times) Enterprise value divided by annual revenue, a capital-structure-neutral version of the price-to-sales ratio. EV/Sales = Enterprise Value / Annual Revenue

Evening Star Technical Analysis & Chart Patterns qualitative A three-candle formation of a large rising candle, a small-bodied candle, then a large falling candle closing well into the first body. Test: candle 1 rises strongly; candle 2 has a small body above it; candle 3 falls and closes below the midpoint of candle 1's body

Event Risk Risk & Portfolio Management qualitative The risk that a specific identifiable occurrence causes a sudden large move in a security's price. Test: a scheduled or plausible discrete event exists whose outcome would materially change the security's value

Ex-Dividend Date Corporate Actions, Dividends & Governance ₹ The first day a share trades without entitlement to a declared dividend. Theoretical Ex-Dividend Price = Cum-Dividend Price - Dividend per Share

Exceptional Item Financial Statements & Accounting ₹ crore A gain or loss that is material and outside the ordinary course of business, disclosed separately so that underlying performance stays visible. Test: the item is material in size and unusual in nature or frequency, and is therefore presented on its own line

Exchange Rate Economy, Macro & Market Cycles ₹ The price of one currency expressed in terms of another. USD/INR = number of rupees required to buy one US dollar

Exchange-Traded Fund Funds, ETFs & Index Investing qualitative A fund whose units trade on a stock exchange throughout the day at market-determined prices. Test: units are listed and traded on an exchange, with creation and redemption in large blocks by authorised participants

Exit Load Funds, ETFs & Index Investing % A charge deducted from redemption proceeds when units are sold within a stated period of purchase. Exit Load = Redemption Value x Load Percentage, applied if held less than the stated period

Expansion Economy, Macro & Market Cycles qualitative The phase of the business cycle in which output, employment and incomes are rising. Test: real GDP, employment and industrial production are rising on a sustained basis from a prior trough

Expectancy Risk & Portfolio Management ₹ The average result per trade of a strategy, combining win rate with the sizes of wins and losses. Expectancy = (Win Rate x Average Win) - (Loss Rate x Average Loss)

Expense Ratio Funds, ETFs & Index Investing % The annual cost of running a fund, expressed as a percentage of its assets and deducted from the NAV. Expense Ratio = Total Annual Costs / Average Assets Under Management x 100

Expiry Date Derivatives, Futures & Options days The date on which a derivative contract ceases to exist and is settled. Test: the contract's rights and obligations terminate at the close of the stated expiry day, with settlement at the closing reference price

Exponential Moving Average Indicators & Oscillators ₹ A moving average that weights recent periods more heavily, with weights decaying geometrically into the past. EMA = Price x k + Previous EMA x (1 - k), where k = 2 / (n + 1)

Exposure Margin Derivatives, Futures & Options ₹ An additional margin charged on top of SPAN margin as a buffer against risks the scenario model does not capture. Exposure Margin = a prescribed percentage of contract value, or a multiple of the underlying's volatility, whichever the exchange specifies

Extraordinary General Meeting Corporate Actions, Dividends & Governance qualitative Any general meeting of shareholders other than the annual general meeting, called to decide urgent business. Test: the meeting is convened by the board, or on requisition by members holding at least one-tenth of the paid-up capital carrying voting rights

Terms starting with E