Glossary of Terms

  • Entitlement Issue (Open Offer)

    Shareholders are given the right to subscribe for the new fully paid share. The new shares are not issued in nil paid form.
  • EPIC

    Stands for Exchange Price Information Code. Also referred to as a "symbol" or "ticker". This is a three or four letter code, unique to each company. It saves you having to type out the company name in full.
  • EPS

    Earnings Per Share is calculated as the net income attributable to ordinary shares for a specific period divided by the number of outstanding ordinary shares. Companies usually use a weighted average number of shares outstanding over the reporting term.
  • Equities

    Ownership interest in a company in the form of common stock or preferred stock.
  • ETC

    An Exchange Traded Commodity (ETC) is an investment vehicle that tracks the performance of an underlying commodity or group of commodities. It is a variation on the Exchange Traded Fund (ETF) and is traded just like normal shares.
  • EUR

    Euro - the common currency of the European union.
  • Euroclear

    This is a clearing house for securities traded in the Euromarket. Euroclear specialises in verifying information supplied by two brokers in a securities transaction, and in the settlement of securities.
  • Ex Dividend

    The opposite of 'cum', literally meaning 'without'. Used to indicate that the buyer is not entitled to the next dividend payment.
  • Ex Rights

    Trading has previously commenced "ex" rights on this stock.
  • Ex Bonus Price

    The theoretical value of each share after there's been a Bonus Issue.
  • Exchange Market Size (EMS)

    Exchange Market Size (EMS) is the maximum number of shares that the market makers are obliged to quote for a particular security. EMS is based on a percentage of the share's average daily turnover in the previous year.
  • Exchange Rate

    The rate at which one currency trades against another.
  • Exchange Traded Funds (ETFs)

    A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. They have low management fees and unlike investment trusts, do not trade at a discount or premium to NAV.
  • Exchange

    An exchange is an organised market place that provides access to capital and facilitates securities dealing through trading platforms and services.
  • Ex Dividend Date

    Any shareholder who owns or buys their shares before this date will be entitled to the next dividend payment. Before this date, shares are described as "cum" dividend ("cum" is Latin for "with"). Any shares bought on or after this date are "ex" dividend; without the right to the payment.
  • Execution Only

    A service where the stockbroker simply executes the trade for the client and does not give advice on what to buy or sell.
  • Exponential Moving Average

    A type of moving average that is similar to a simple moving average, except that more weight is given to the latest data. The exponential moving average is also known as "exponentially weighted moving average".
  • Exposure

    The full financial amount you are exposed to. This is particularly relevant ot derivatives, where you are trading on margin.
  • Extended Settlement

    Settlements periods that are above a T+3 settlement are considered as "extended settlements" which can carry a premium from the market maker as they are buying T+3 and selling, say, T+20. This sort of period will carry a premium of approximately 1%, which represents the market maker's financing costs.
  • Extraordinary General Meeting (EGM)

    These are called as and when special matters arise, which need to be discussed and voted upon by shareholders.