See: Dividend

Each Way
Commissions made by a broker who was involved in both the buy and the sell side of a transaction.

See: Commission

Early Withdrawal Penalty
An assessment charged to an investor when they withdraw their money from a fixed-term investment before its maturity. For example, if investors who have a one year certificate of deposit withdraw their money after eight months, the banking institution would assess a penalty.

See: Certificate Of Deposit

Earned Before Taxes
A corporation's earnings after bond interest has been paid but before it pays taxes.

See: Earnings Before Interest and Taxes

Earned Income
Income generated from employment, pensions or annuities--for example, wages, salary, commissions, bonuses, IRAs, etc.

Earnings
The amount of profit a corporation receives after expenses and taxes are paid.

See: Expense

Earnings Before Interest and Taxes (EBIT)
A corporation's earnings before it pays bond interest and taxes.

See: Earned Before Taxes

Earnings Momentum
A corporation's earnings per share that continuously increases from one period to another. The usual effect is that a stock's price will rise. A corporation has earnings momentum, for instance, when its earnings per share are 24% this year, with the previous year being 16%. Its stock should see a rise in its price.

See: Earnings Per Share

Earnings Per Share (EPS)
Amount of a corporation's earnings that are apportioned to each outstanding share of common stock. It is calculated by dividing net income minus preferred dividends and bond interest by the number of outstanding common shares. If all common stock equivalents--such as convertible bonds, preferred stock, rights and warrants--have been exchanged into common stock, earnings per share is considered to be "fully diluted."

See: Net Income Per Share of Common Stock

Earnings Price Ratio (EPR)
A corporation's earnings per share related to its current stock price. It is used to compare the attractiveness of stocks, bonds, and money market instruments--also called "earnings yield."

See: Earnings Per Share

Earnings Report
A corporation's profit and loss statement that displays its earnings or losses for a specific time period--also called an income statement. The report provides details on revenues, expenses, and the net result.

See: Income Statement; Profit And Loss Statement

Eastern Account
An underwriting account for a new issue of municipal securities whereby the underwriting group, as a whole, assumes financial responsibility for successful distribution of the issue--also called an "undivided account." A member's profits are contingent upon their percentage of participation in the account regardless of how much they sell. Member A, for example, has a 15% participation and sells 20% of the bonds. If the group sells only 90% of the bonds, member A is still responsible to sell unsold bonds equal to the same percentage of his original participation--that is 15%.

See: Municipal Bond; New Issue; Underwrite; Western Account

EBIT
A corporation's earnings before it pays bond interest and taxes.

See: Earned Before Taxes

Econometrics
Mathematical computerized models used to illustrate the relationship between key economic conditions such as employment rates, interest rates, and government policies. It is then used to conduct analyses on various economic situations. An econometric model, for example, might be used to show the relationship between consumer spending and unemployment rates.

See: Economic Indicators

Economic Growth Rate
Annual percentage change in the gross national product (GNP). If the rate rises in two consecutive quarters, it is considered to indicate an expanding economy. If the rate drops in two consecutive quarters, it is considered to mean a recession. A "real economic growth rate" is obtained when the rate is adjusted for inflation.

See: Gross National Product

Economic Indicators
Key statistics indicating the direction (expanding or contracting) of the economy. Some indicators are the unemployment rate, inflation rate and balance of trade.