Stock market terms starting with E

E-Voting Corporate Actions, Dividends & Governance qualitative Electronic voting on shareholder resolutions, mandatory for listed companies in India. Test: the company provides a remote electronic voting facility open for a stated period before the meeting

Earnings Growth Fundamental Analysis & Valuation % The rate at which a company's profit increases from one period to the next. Earnings Growth = (Current Period Earnings - Prior Period Earnings) / Prior Period Earnings x 100

Earnings per Share Fundamental Analysis & Valuation ₹ Net profit attributable to equity shareholders divided by the weighted average number of shares outstanding. EPS = Profit Attributable to Equity Shareholders / Weighted Average Shares Outstanding

Earnings Quality Fundamental Analysis & Valuation qualitative The extent to which reported profit is backed by cash, is repeatable, and reflects the underlying business rather than accounting choices. Test: cumulative operating cash flow tracks cumulative net profit over several years, with few exceptional items and stable accounting policies

Earnings Yield Fundamental Analysis & Valuation % Earnings per share expressed as a percentage of the share price — the inverse of the price-to-earnings ratio. Earnings Yield = Earnings per Share / Market Price per Share x 100 = 1 / P/E x 100

EBITDA Financial Statements & Accounting ₹ crore Earnings before interest, tax, depreciation and amortisation — a measure of operating profit that ignores capital structure and asset charges. EBITDA = Revenue - Operating Expenses (excluding depreciation and amortisation)

EBITDA Margin Fundamental Analysis & Valuation % EBITDA as a percentage of revenue, measuring operating profitability before depreciation, interest and tax. EBITDA Margin = EBITDA / Revenue x 100

Economic Value Added Fundamental Analysis & Valuation ₹ crore The profit a business earns above the full cost of the capital employed to produce it. EVA = Net Operating Profit After Tax - (Invested Capital x Weighted Average Cost of Capital)

Effective Tax Rate Fundamental Analysis & Valuation % The tax charge in the accounts expressed as a percentage of profit before tax. Effective Tax Rate = Total Tax Expense / Profit Before Tax x 100

Efficient Frontier Risk & Portfolio Management qualitative The set of portfolios offering the highest expected return for each level of risk. Test: no other portfolio offers a higher expected return at the same standard deviation, or the same return at a lower one

Elliott Wave Theory Technical Analysis & Chart Patterns qualitative A framework proposing that price moves in repeating sequences of five waves in the direction of the trend and three against it. Structure: impulse waves 1-2-3-4-5 in the trend direction, followed by corrective waves A-B-C, with each wave subdividing into the same structure

ELSS Funds, ETFs & Index Investing qualitative An equity-linked savings scheme: a diversified equity fund with a three-year lock-in that qualifies for a tax deduction. Test: minimum 80% in equity, three-year lock-in per instalment, and eligibility under Section 80C of the Income Tax Act

Emergency Fund Risk & Portfolio Management ₹ Money held in safe, immediately accessible instruments to cover unexpected expenses or loss of income. Target Emergency Fund = Monthly Essential Expenses x Number of Months of Cover Required

Employee Stock Option Corporate Actions, Dividends & Governance ₹ A right granted to an employee to buy company shares at a preset price after a vesting period. Perquisite Value on Exercise = (Fair Market Value on Exercise Date - Exercise Price) x Number of Options Exercised

Endowment Effect Market Psychology & Behavioural Finance qualitative The tendency to value something more highly simply because one owns it. Test: the price demanded to sell an item exceeds the price the same person would pay to buy it

Enterprise Value Fundamental Analysis & Valuation ₹ crore The value of the whole business regardless of how it is financed, equal to market capitalisation plus net debt. Enterprise Value = Market Capitalisation + Total Debt - Cash and Cash Equivalents + Non-Controlling Interests

Envelope Channel Indicators & Oscillators % Bands drawn a fixed percentage above and below a moving average. Upper Envelope = Moving Average x (1 + Percentage); Lower Envelope = Moving Average x (1 - Percentage)

Equal-Weighted Index Funds, ETFs & Index Investing % An index in which every constituent carries the same weight regardless of company size. Weight of each Constituent = 1 / Number of Constituents

Equity Market Basics & Instruments ₹ crore The residual ownership interest in a company: what would remain for its owners once every liability had been settled. Equity = Total Assets - Total Liabilities

Equity Fund Funds, ETFs & Index Investing qualitative A mutual fund investing at least 65% of its assets in Indian equity and equity-related instruments. Test: minimum 65% allocation to domestic equity, which also determines the scheme's tax treatment

Equity Risk Premium Risk & Portfolio Management % The additional return investors require for holding equities rather than the risk-free asset. Equity Risk Premium = Expected Market Return - Risk-Free Rate

Equity Share Market Basics & Instruments qualitative The ordinary ownership share of a company, carrying voting rights and a claim on profits only after every other claimant has been paid. Payout rank: secured creditors, then unsecured creditors, then preference shares, then equity shares

ETF Premium/Discount Funds, ETFs & Index Investing % The gap between an ETF's market price and the value of its underlying holdings. Premium or Discount % = (Market Price - iNAV) / iNAV x 100

Euphoria Market Psychology & Behavioural Finance qualitative A state of widespread optimism in which risk is discounted and price rises are treated as normal. Test: rising participation, leverage and new issuance combine with a narrative explaining why traditional valuation no longer applies

Terms starting with E