SolvedVATFIN9260 | Glossary of terms: E
From HM Revenue & Customs · VAT Finance Manual
| Equalising Interest | The difference between the commonly available rate, and a special rate offered for a specific purpose paid for by a third party. The difference represents part of the lender’s consideration for this loan. |
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| Equity | The risk sharing part of a company’s capital, usually referred to as ordinary shares. |
| Error Deals | When a broker, acting for a client, buys the wrong security (e.g. buys preference shares when the client ordered ordinary shares). |
| Euro Commercial Paper (Europaper) | Paper issued in currencies other than the issuing country’s currency, and in higher value denominations than longer dated securities. See also Commercial Paper, Euronotes, and Sterling Commercial Paper. |
| Eurobond | A long-term loan issued in a currency other than that of the country or market in which it is issued. Interest is paid without the deduction of tax. |
| Euroclear | International clearing system for the settlement of transactions in securities, essentially Eurobonds, based in Brussels. |
| Eurocurrency | A term used to describe deposits of currency which are held by people who do not live in the country whose currency it is, and who keep deposits in a third country. The bank receiving Eurocurrency will then lend it out at a good rate of interest to anyone wishing to borrow in that currency. |
| Euronotes | A type of commercial paper with fixed maturity dates. See also Commercial Paper, Euro Commercial Paper (Europaper), and Sterling Commercial Paper. |
| European Style Option | An option that can be exercised only at the expiry date. |
| Ex | The opposite of Cum, and used to indicate that the buyer is not entitled to participate in whatever forthcoming event is specified. Ex cap, ex dividend, ex rights etc. |
| Exchange Delivery Settlement Price (EDSP) | The settlement price determined by the exchange at which delivery of a futures contract (either cash or physical) takes place. |
| Exercise | The action of the option holder in demanding that the option writer fulfils their obligation to buy or sell the underlying commodity or financial instrument/asset to the holder. The exercise or ‘strike’ price is the price at which the holder may exercise their right. |
| Extraordinary General Meeting (EGM) | Any meeting of a company’s shareholders other than its AGM. |