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Earnings
From a corporate perspective, earnings are profits, or net income, after the company has paid income taxes and bond interest

Earnings estimate
Professional share analysts use mathematical models that weigh companies' financial data to predict their future earnings per share on a quarterly, annual, and long-term basis. Investment research companies, publish averages of analysts' estimates, called consensus estimates, for shares that are closely followed by market professionals. When a company's earnings report either exceeds or fails to meet analysts' estimates, it's called an earnings surprise. An upside surprise occurs when a company reports higher earnings than analysts predicted and usually triggers an increase in the share price. A negative surprise, on the other hand, occurs when a company fails to meet expectations and often causes the share's price to fall.

Earnings momentum
When a company's earnings per share grow from year to year at an ever-increasing rate, that pattern is described as earnings momentum. One example might be a company whose earnings grow one year at 10%, the next year at 18%, and a third year at 25%. In many cases, this momentum triggers an increase in the share's share price as well, as investors identify the share as one they expect to continue to grow and increase in value.

Earnings per share
Earnings per share (EPS) is calculated by dividing a company's total earnings by the number of existing shares. For example, if a company earns Rs.100 million in a year and has issued capital of 50 million shares, the earnings per share are Rs.2. Earnings and other financial measures are provided on a per share basis to make it easier for investors analyze the information and compare the results to those of other investments.

Efficient market
When the information that investors need to make investment decisions is widely available, thoroughly analyzed, and regularly used, the result is an efficient market. Conversely, an inefficient market is one in which there is limited information available for making rational investment decisions. Efficient mark

Efficient market theory
Proponents of the efficient market theory believe that a share's current price accurately reflects what investors know about the share, and further that you can't predict a share's future price based on its past performance. Their conclusion, which is contested by other experts, is that it's not possible for an individual or institutional investor to outperform the market as a whole. Index funds, which are designed to match, rather than beat, the performance of a particular market segment, are in part an outgrowth of efficient market theory.

Emerging market
Countries in the process of building market-based economies are broadly referred to as emerging markets, though there are major differences among the countries included in this category.

Eurobond
Bonds issued outside the borders of a national market. If may or may not be denominated in the issuers national currency.

Euroequities
Equities underwritten and distributed to investors outside the country of origin of the issuer.

European Option
A put or call that can be exercised only on its expiration date, and not before it.

Ex
Means ‘without’ or ‘not inclusive of’. A price so quoted excludes recently declared dividends, rights, or bonus share.

Exchange
Regulated market place where products are bought and sold through intermediaries, for e.g. a Stock Exchange for securities market products.

Expected Return
The return an investor might expect on an investment if the same investment were made many times over an extended period. The return is found through the use of mathematical analysis.

Extrinsic Value
The amount by which the market price of an option exceeds the amount that could be realised if the option were exercised and the underlying commodity liquidated.