Glossary E

Section E


A company's net income.

Earnings Per Share (EPS)

Total earnings divided by the number of common shares outstanding.

Effective Maturity

The expected redemption due to pre-refunding, puts, or maturity and does not reflect any sinking fund activity, optional or extraordinary calls.

Emerging Market Equity Funds

Emerging Market Equity Mutual Funds seek long term capital appreciation by investing primarily in emerging market equity securities. Income is usually incidental.

Emerging Market Income Fund

Emerging Market Income Mutual Funds seek income by investing in income producing securities from emerging market countries.

Ending Market Value

Market value of your portfolio on the ending date of time period being displayed.

Energy/Natural Resources Funds

These types of mutual funds invest primarily in equity securities of companies involved in the exploration, distribution, or processing of natural resources.

Equal Credit Opportunity Act (ECOA)

A federal law requiring lenders to make credit equally available to all applicants without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of public assistance.


"Your ""financial interest"" in a property, determined by subtracting all amounts owed from the property's current market value.
Property Current Market Value = $200,000
Mortgage Loans and Liens = $150,000
Owner's Equity = $50,000"

Equity Holdings Statistics

Expressed as a percentage except for median market cap, which is in dollars. Note: This appears only for equity mutual funds. Bond holdings will appear for bond mutual funds.

Equity Income Funds

Equity Income Mutual Funds seek current income by investing a minimum of 65% of its assets in income-producing equity securities.


Your money that is set aside and held in trust by a third party. In a mortgage transaction the funds are commonly used for homeowner's insurance and property tax payments.

Escrow Account

A trust account created by a third party to hold money. In a mortgage transaction, generally these funds are used to pay taxes and insurance bills when they become due. To fund the account, monthly mortgage payments may include 1/12 of annual property taxes and insurance.

Escrow Payment

The portion of your monthly mortgage payment held in an escrow account to pay taxes, homeowner's insurance, mortgage insurance, lease payments and other items as they become due. In some states, this is known as impounds, or reserves.

Escrowed Municipals

Proceeds from a new bond issue are held in a separate escrow account to pay off existing bond issue when it matures.

Escrowed to Maturity

Excess revenues from an issue are placed in an escrow account for the express purpose of ensuring payment of bonds at maturity. When funds in the escrow account are adequate to pay off the bond, it becomes escrowed to maturity.

Essential Purpose Bonds

Bonds which are secured by the revenues from a service which rate payers cannot do without, such as electric, water and sewer, etc.


The total of property, possessions, and debt owned or owed respectively at the time of death.

Estimated Duration

The estimated duration assesses a mutual fund's sensitivity to interest rate changes. The greater the duration of a mutual fund, the greater its sensitivity to interest rates changes. For every percentage point decline (increase) in interest rates, a mutual fund's price will approximately increase (decrease) by the bond's duration. For example, for a security with a duration of 6 years, a one percentage point increase (decrease) in interest rates would result in a decrease (increase) in price of approximately 6%.

Exchange Privilege

The right of a shareholder to switch from one mutual fund to another within one fund family - often at no additional sales charge.


A synonym for "without dividend." The buyer of an ex-dividend stock is not entitled to the next dividend payment. Dividends are paid on a set date to all those shareholders recorded on the books of the company as of a previous date of record.

Ex-Dividend Date

The first date on which a security is traded without entitling the buyer to receive the dividend.


Action taken by an option holder that requires the writer to perform the terms of the contract.


The interest on these bonds is not considered tax preference items, and therefore is not used in calculations to determine potential liability to AMT.

Expense Ratio

The amount expressed as a percentage of total investment, that shareholders pay annually for mutual fund operating expenses and management fees. The expense ratio is taken out of the mutual funds current income and is disclosed in the prospectus to shareholders.

Expiration Date

The date after which an option can no longer be exercised. If an option has not been exercised by its expiration date, it becomes worthless and ceases to exist. The expiration date for most options is the Saturday following the third Friday of the expiration month.


This message, which appears in the Online Services Transaction Summary, indicates that an order has become void: e.g., all unexecuted day orders expire at the end of a trading day.

Ex-Rights Date

The date on or after which a stock trades without subscription rights previously declared.

Extension Risk

For a CMO, the risk that rising interest rates may slow the anticipated prepayment speeds, causing investors to find their principal committed longer than they expected. As a consequence, they may miss the opportunity to earn a higher rate of interest on their money.

Extraordinary Redemption

This is different from optional redemption, or mandatory redemption, in that it occurs under an unusual circumstance, such as destruction of the facility financed.