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Earnings for Ordinary Shareholders

Profit after deducting interest charges and taxation and after deducting preference dividends (but before deducting extraordinary items).

Earnings per Share

Calculated as earnings for ordinary shareholders divided by the number of shares which have been issued by the company.

Effective Interest Rate

The rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument.

Efficient Markets Hypothesis

Share prices in a stick market react immediately to the announcement of new information.


International financial reporting standards approved for use in Member States of the European Union through a formal process of endorsement.


See endorsed.


A business activity or a commercial project.

Entity, Entities

Something that exists independently, such as a business which exists independently of the owner.

Entry Price

The value of entering into acquisition of an asset or liability, usually replacement cost.

Equities Analyst

A person who investigates and writes reports on ordinary share investments in companies (usually for the benefit of investors in shares).


A description applied to the ordinary share capital of an entity.

Equity Accounting

Reports in the balance sheet the parent or group's share of the investment in the share capital and reserves of an associated company.

Equity Interest

See ownership interest.

Equity Portfolio

A collection of equity shares.

Equity Shares

Shares in a company which participate in sharing dividends and in sharing any surplus on winding up, after all liabilities have been met.

Eurobond Market

A market in which bonds are issued in the capital market of one country to a non-resident borrower from another country.

Exit Price

See exit value.

Exit Value

A method of valuing assets and liabilities based on selling prices, as an alternative to historical cost.


An expense is caused by a transaction or event arising during the ordinary activities of the business which causes a decrease in the ownership interest.

External Reporting

Reporting financial information to those users with a valid claim to receive it, but who are not allowed access to the day-to-day records of the business.

External Users (of Financial Statements)

Users of financial statements who have a valid interest but are not permitted access to the day-to-day records of the company.