Glossary of Financial Terms

E

EFT

Acronym for Electronic Funds Transfer (see below)

· See Also · Canadian Payments Association · PAC · PAD

Electronic Funds Transfer

The transfer of funds or assets between two accounts.

Endorse

To sign the reverse side of a cheque in order to cash it.

Equity

When used in conjunction with real estate, the term "equity" refers to the difference in the value of item or property and the amount owing on that item or property. When used in the context of investments the term "equity" most often simply refers to a share or share in a company.

Equity Offering

The issuance of stock or shares in a company on the strength of that company's equity.

· See Also · Equity · Initial Public Offering · IPO

Equity Options

An option but not obligation whereby a shareholder has the right to purchase further shares at a predetermined price for a fixed time period.

Escrow

A reference to a neutral third party which holds the assets or items specific to a transaction until all elements and conditions of that transaction have been satisfied.

E-Statement

E-Statement is an electronic version of a typical bank or credit-card statement with an explicit begin and end date.

Many banks are implement E-Statements for two reasons: 1) it saves the bank money if they don't have to mail out paper statements and 2) it is an environmentally sound policy (saves thousands of trees a year). Some banks are going further by allowing their customers to do away with the concept of "the statement" altogether (since any web banking user can typically see all transactions within a given time period by using a simple query on their account).

In some cases customers are notified via email that a "new statement" has arrive but this behaviour is (and should be) dramatically reduced in light of all the phishing schemes being used to lure customers into inputting their username/card-number and password.

Euro

The form of currency presently in circulation in Europe, first circulated on Jan. 1st, 2002.

· See Also · European Currency Unit

Exercise Price

The prearranged price at which an investor may exercise their option to buy shares or stocks.

Expatriation

To remove oneself from residence or citizenship in a country in the interest of tax or other monetary benefit.

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