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earnest money

Similar to a deposit, earnest money is the money given by the buyer to the seller of a property as an assurance of their intentions to purchase the property.

earnings per share (eps)

Total net profits divided by the number of outstanding common shares of a company.

economic cycle

Economic events are often felt to repeat a regular pattern over a period of anywhere from two to eight years. This pattern of events ends to be slightly different each time, but usually has a large number of similarities to previous cycles

effective tax rate

The percentage of total income paid in federal and state income taxes

efficient market

The market in which all the available information has been analyzed and is reflected in the current stock price

employee stock ownership plans (esops)

An ESOP plan allows employees to purchase stock, usually at a discount, that they can hold or sell. ESOPs offer a tax advantage for both employer and employee. The employer earns a tax deduction for contributions of stock or cash used to purchase stock for the employee. The employee pays no tax on these contributions until they are distributed.

escrow funds

Escrow funds are funds accumulated and held in an account for the periodic payment of property taxes and insurance.

estate

A decedent's estate is equal to the total value of their assets as of the date of death. The estate includes all funds, personal effects, interest in business enterprises, titles to property, real estate, stocks, bonds and notes receivable.

estate planning

The orderly arrangement of one's financial affairs to maximize the value transferred at death to the people and institutions favored by the deceased, with minimum loss of value because of taxes and forced liquidation of assets

excess distributions

An individual may have to pay a 15% tax on distributions received from qualified plans in excess of $150,000 during a single year. The tax, however, does not apply to distributions due to death, distributions that are rolled over, and distributions of after-tax contributions.

executor

The person named in a will to manage the estate of the deceased according to the terms of the will