- E bond
- A U.S. government bond issued before 1980.
- early-withdrawal penalty
- A fee charged to depositors if they withdraw their certificates of deposit (CDs) or saving deposits before the CDs or savings deposits reach maturity.
- earnest money
- A sum of money paid for property to assure the seller that the buyer is sincere. When the sales transaction is completed, the earnest money is counted toward the purchase price of the property.
- earnings per share
- The amount that each stock share earns in dividends after both preferred stockholders and taxes have been paid.
- EE bond
- A U.S. government bond issued after 1980.
- effective annual yield
- What a depositor earns on a certificate of deposit (CD) or savings account on a yearly basis, provided the money is not withdrawn.
- efficient market
- Refers to an economic theory that says that today’s prices for securities and commodities are a measure of what investors think their prices will be in the future.
- embezzlement
- Fraudulently appropriating money for personal use.
- Employee Retirement Income Security Act (ERISA)
- Federal act describing how managers of profit-sharing funds and private pension funds may invest those funds. ERISA sets guidelines for fund managers.
- employee stock ownership plan (ESOP)
- A plan allowing employees to buy stock in the company they work for.
- escrow
- An agreement whereby a deed, a bond, or property is held in trust by a third party until some obligation is fulfilled.
- estate
- A deceased’s property at the time of death. An estate is passed to the deceased’s heirs if he or she left a will. If not, the matter of how to divide the estate is decided by a probate court.
- estate tax
- Taxes levied by federal and state governments on the transfer of property from an estate to its beneficiaries. Estate taxes are paid by the estate. Inheritance taxes—taxes the heirs pay for the property they receive—are paid by heirs.
- Economic value added (EVA)
- Measures the true economic profit of a business by comparing a firm’s profit to the return on investment that shareholders should have earned.
- excise taxes
- Taxes on acts, not property. For example, sales of liquor are subject to excise taxes.
- executor
- The institution or person named in a will to manage the estate of the deceased. The executor pays taxes, distributes the estate’s assets, and pays estate debts.
- external audit
- An audit of a business conducted by an outside auditor to determine its financial soundness. Outside auditors have no stake in the business being audited and therefore can be considered a disinterested party.