Glossary

E

• Earnings Earning is the difference between revenue & cost of sales. We can interpret various types of earning from the balance sheet data for analysis.
• Earnings per Share   EPS refers to the earnings available for the equity holders divided by the number of equity shares outstanding.
• EBIDTA Earnings Before Interest, Taxes, Depreciation and Amortization.
• Economies of scale The benefits arise due to increase in production size in which the average unit cost falls as volume increases.
• Efficient Portfolio A portfolio that ensures maximum return for a given level of risk or a minimum level of risk for an expected return. There are various theories available to construct an efficient portfolio.  
• E-IPO A company proposing to issue capital to public through the on-line system of the stock exchange for offer of securities can do so if it complies with the requirements under Chapter 11A of DIP Guidelines. The appointment of various intermediaries by the issuer includes a prerequisite that such members/registrars have the required facilities to accommodate such an online issue process.
• Employee Stock Ownership Plan ESOP is a trust established by a company for the allocation of shares to employees. It is a tax efficient way to provide this motivational benefit to the employees.
• Entry Load When an investor purchases units of the mutual fund scheme an initial amount charged by a fund for its administrative expenses or for paying commissions to brokers. This charge is termed as the entry load. Entry load is levied as a percentage of NAV. (Also see exit load).  
• Equity fund   This refers to the funds that invest primarily in equity and equity related instruments with an objective to provide capital appreciation.  
• European-Style Exercise An option, which may be exercised only on its expiry day.