An escrow account is a financial arrangement where a third party holds and regulates payment of funds required for two parties involved in a transaction. In real estate, it typically manages property tax, homeowner's insurance, and mortgage insurance payments.
An escrow agent is a neutral third party responsible for holding and managing funds or assets until predetermined contractual conditions are met, commonly used in real estate transactions.
Escrow Closing is a term used to signify the finalization of real estate transactions, particularly in states where deeds of trust are used in place of traditional mortgages. This process involves an escrow agent ensuring that all documents and funds are properly managed and disbursed.
Espionage is the act of spying or using spies to gather information about the activities of a target, often involving illicit or covert operations. This includes both governmental and corporate levels, where gathering confidential or proprietary information can lead to significant advantages or disadvantages.
The title 'Esquire' (abbreviated as 'Esq.') is used by lawyers in the United States as an alternative honorific preceding an individual's name, e.g., 'Allen Seegull, Esq.' instead of 'Mr. Allen Seegull.'
An essential industry is one deemed by society to be critical for political or economic reasons and must be localized within the economy irrespective of comparative advantages, often insulated from external trade. Examples include the defense industry.
The term 'Estate' broadly encompasses all that a person owns, covering both real property and personal property. It can refer to the collection of assets left behind after death or the nature and extent of a person's interest in or ownership of land.
Explore estate duty, a type of tax levied on estates of deceased individuals before inheritance taxes. Understand its impact, calculation, examples, and frequently asked questions.
An Estate For Life, also known as a Life Estate, is a type of property ownership typically used in estate planning to allow someone to use and live in a property for the duration of their life.
An estate in reversion is a type of estate left by the grantor for themselves, beginning after the termination of a specific estate granted by them. For example, a landlord has an estate in reversion that becomes theirs to possess when the lease expires.
Estate in severalty refers to property ownership by a single person or legal entity, with no shared aspect of control or ownership by others.
Estate planning involves the orderly handling, disposition, and administration of an estate when the owner dies, including drawing up wills, setting up trusts, and minimizing taxes.
Estate planning distribution involves the management and allocation of a person's assets during their lifetime and after their death, ensuring a systematic transfer of property to beneficiaries.
The estate tax is a levy on the total value of a decedent's estate, including all real, tangible, and intangible property, minus any liabilities. This tax is levied by the government based on the estate's fair market value at the time of death. The amount due may be reduced by applying available credits and exemptions. Comprehensive knowledge of federal and state tax laws is necessary for accurate calculation and assessment.
An estate tax payable is the amount resulting from specific deductions from the tentative estate tax, including the unified credit, state death taxes, gift taxes paid on gifts made before 1977, foreign death taxes, and estate taxes on prior transfers.
An estimate refers to a value that approximates an unknown parameter in various fields, including everyday usage and statistical analysis. It could be a single value or range derived from a sample population.
An estimated assessment is a tax assessment raised by HM Revenue based on estimated profits or income of a taxpayer, often derived from the previous period's assessment.
Estimated tax refers to income taxes paid quarterly by taxpayers on income not subject to withholding taxes. These payments are projections of ultimate tax liabilities for the taxable period.
The period of time over which a taxpayer will use an asset. In theory, depreciable assets are written off over this period for depreciation purposes. However, tax laws often use artificial recovery periods unrelated to the estimated useful life.
Estoppel is a legal principle that prevents a party from arguing something contrary to a previous claim or behavior if it would lead to an unjust result. It ensures fairness and justice by enforcing consistency in parties' actions and statements.
An estoppel certificate is a legal document by which the mortgagor (borrower) certifies that the mortgage debt is a lien for the amount stated. Subsequently, the debtor is prevented from claiming that the balance due differs from the amount stated.
Estovers refer to the right of a tenant or life tenant to use timber on the leased premises for proper maintenance of the property.
An abbreviation of the Latin term 'et alii,' meaning 'and others.' It's commonly used in academic citations to refer to multiple authors of a work.
Et Non is a Latin term meaning 'and not.' It is commonly used in legal contexts to specifically negate part of a statement.
Abbreviation of 'et uxor', a Latin term meaning 'and wife', commonly used in historical legal documents such as wills and deeds.
Exchange-Traded Funds (ETFs) are investment funds that are traded on stock exchanges, much like stocks. They offer a way for investors to buy and sell shares of a diversified portfolio in a single transaction.
Ethernet is a standard method of connecting computers to a Local Area Network (LAN) primarily using coaxial cable, but also other forms of cabling and link media.
Ethical Investment, also known as Socially Responsible Investment (SRI), involves selecting investments based on ethical principles and social considerations, such as avoiding companies engaged in activities deemed unethical (e.g., tobacco or armaments) and favoring those with positive environmental and social records.
Ethics refers to moral and professional principles that guide the conduct of individuals and organizations. It is crucial for maintaining public confidence and integrity in various professions, including business, accounting, law, and others.
EU-adopted IFRS (International Financial Reporting Standards) are the IFRS standards as issued by the International Accounting Standards Board and adopted for use within the European Union. These standards may differ in details from the global IFRS.
Euribor, or the Euro Interbank Offered Rate, is a key benchmark rate based on the average interest rates at which European banks lend funds to one another in the interbank market.
The euro (€) is the currency unit of the European Union's eurozone, divided into 100 cents, and used by numerous EU member countries for trade and financial transactions.
Euribor is the rate of interest at which banks within the Eurozone lend to one another. It's crucial for determining interest rates for various financial products throughout the region.
A Euro-Commercial Paper (ECP) is a short-term unsecured promissory note issued by companies, typically denominated in a currency other than the issuer's domestic currency, to raise capital in international money markets.
Euro-Commercial Paper (ECP) is a type of short-term unsecured promissory note issued in a eurocurrency. Primarily centered in the London market, ECP offers a swift method for obtaining same-day funds, often used for cross-border financial transactions like those between Europe and New York.
The Euro-Top 100 Index represents the top 100 most highly capitalized and actively traded stocks in Europe, providing a comprehensive benchmark for investors seeking exposure to the European market.
Eurobanking refers to the acceptance of deposits and the extension of loans denominated in currencies other than the currency of the country where the bank is located.
Financial intermediaries that operate within the Eurocurrency market, facilitating international lending and borrowing transactions in currencies outside their domestic banking regulations.
A Eurobond is a type of bond issued in a eurocurrency, and it plays a significant role in the international finance market by allowing issuers to raise capital efficiently across borders.
Euroclear is a pan-European provider of clearing, settlement, and related services for bond, equity, and investment-fund transactions. Based in Brussels, it was set up in 1968 by the US bank J. P. Morgan.
Short-term notes issued by firms and denominated in currencies of countries other than the one in which they are sold. These instruments are used for funding working capital and are an integral part of the global money market.
A currency deposited in a bank outside its country of issue, providing a cheap and convenient form of liquidity for international trade and investment.
Eurodollars are U.S. dollars held as deposits in foreign banks, mainly in Europe, and are commonly used to settle international transactions.
Eurodollar bonds are bonds that pay interest and principal in Eurodollars, which are U.S. dollars held in banks outside the United States. These bonds are usually issued by foreign corporations or governments.
A Eurodollar Certificate of Deposit (CD) is a CD issued by banks outside the United States, primarily in Europe, where both the interest and principal are paid in U.S. dollars. Eurodollar CDs usually have minimum denominations of $100,000 and maturities of less than two years.
Eurodollars refer to U.S. dollars deposited in financial institutions outside the United States. The eurodollar market originated in London in the late 1950s, driven by the growing demand for dollars to finance international trade and investment.
The FTSEurofirst 300 Index is a benchmark index that tracks the performance of 300 of the largest and most prominent companies in Europe, utilizing the FTSE's robust indexing methodologies to provide comprehensive market insights.
A financial market that facilitates the international trade of currencies outside of domestic regulatory jurisdictions, alongside being seen as the converged market of the European Union for goods.
Euronext N.V. is a market and clearing system for equities and traded derivatives, established through the merger of the Amsterdam, Brussels, and Paris stock exchanges. It facilitates the trading of financial instruments across several European countries.
Euronext.liffe is an exchange that provides a diverse range of futures and options contracts in several asset classes. Formed by the integration of LIFFE and Euronext, it offers trading facilities for financial instruments such as equity and interest rate derivatives.
EURONIA, or Euro Overnight Index Average, is a reference rate computed as a weighted average of euro overnight funding rates in the London interbank market. It serves as a benchmark for short-term interest rates in the European financial markets.
A form of Euro-commercial paper consisting of short-term negotiable bearer notes, typically issued in dollars or euros. Euronote facilities are set up by syndicates of banks who underwrite these notes.
The European Central Bank (ECB) is the central bank responsible for monetary policy within the Eurozone, ensuring price stability and regulating member banks. It plays a critical role in European and global financial markets.
The European Central Bank (ECB) is the central bank for the eurozone, responsible for monetary policy and issuance of euros in member states.
The European Central Bank (ECB) is the central bank of the European Union, established in 1998. It is responsible for eurozone monetary policy, particularly the setting of interest rates, and operates independently of national governments.
The European Court of Auditors (ECA) is the independent body responsible for auditing the accounts of European Union (EU) institutions. Founded in 1977 and obtaining legal status under the Treaty of Maastricht in 1992, the court ensures that EU funds are spent legally and efficiently.
The European Court of Auditors (ECA) is the institution of the European Union (EU) responsible for auditing the EU's finances. Its role is to improve the financial management of EU funds by evaluating the correctness, legality, and efficiency of the financial undertakings.
The European Currency Unit (ECU) served as the precursor to the Euro and was a unit of account used by the European Economic Community before the adoption of the Euro.
A former currency medium and unit of account created in 1979 to serve as the reserve asset and accounting unit of the European Monetary System (EMS).
The European Economic and Monetary Union (EMU) represents an umbrella term for the group of policies aimed at converging the economies of European Union (EU) member states including the adoption of a single currency, the Euro.
The European Economic and Monetary Union (EMU) signifies the convergence of EU member states' economies, overseeing the adoption of a single currency—the euro, and coordinating national economic policies.
The European Economic and Monetary Union (EMU) is the policy framework that resulted in the creation of the European Central Bank (1998) and a single European currency for participating states.
The European Economic Community (EEC), also known as the Common Market, was established in 1957 by the Treaty of Rome to foster economic cooperation among its member states. Its primary goals were to create a common market and customs union, reduce trade barriers, and enhance economic integration.
The European Financial Reporting Advisory Group (EFRAG) was established in 2001 to advise the European Commission on the use of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) within the EU. It coordinates the views of preparers and users of financial statements as well as accounting professionals and represents these to both the Commission and the International Accounting Standards Board (IASB).
The European Monetary System (EMS) was an arrangement designed to stabilize exchange rates and synchronize economic policy-making among European Community member states. It aimed to lay the groundwork for future economic and monetary union within Europe.
The European Monetary System (EMS) was a framework established to stabilize exchange rates, curb inflation, and prepare for Economic Monetary Union within the European Union.
A European Option is a type of financial derivative that can only be exercised on its expiration date, unlike American options, which can be exercised at any time before expiration.
The European Stability Mechanism (ESM) is an intergovernmental organization established to provide financial assistance to member countries of the Eurozone in financial distress. By offering support mechanisms, the ESM aims to maintain financial stability within the Eurozone.
An intergovernmental body established in September 2012 to provide permanent financial stability for the eurozone by offering financial assistance to member states facing economic difficulties.
The European System of Central Banks (ESCB) is a central banking system comprised of the European Central Bank (ECB) and the national central banks of all EU member states, established to conduct monetary policy, ensure financial stability, maintain a common currency, and promote economic growth.
A comprehensive regulatory framework established by the European Union to enhance financial stability and supervision in the wake of the 2008 global financial crisis.
The European Union (EU) is a political and economic union of 27 member countries that are located primarily in Europe. It aims to foster economic integration, adopt a common currency (Euro for some of the members), and enhance political and social cooperation.
EuroSOX refers to European initiatives, particularly regulatory frameworks, aimed at enhancing and harmonizing financial reporting and disclosure standards across the EU to improve transparency and confidence in financial markets.
The Eurozone comprises the 19 member countries of the European Union that have adopted the euro as their currency, collectively managed under the monetary policy dictated by the European Central Bank.
EV can stand for Enterprise Value, Economic Value, or Expected Value, each significant within their respective contexts in finance and accounting.
The enterprise value (EV) of a company divided by its earnings before interest, taxation, depreciation, and amortization (EBITDA). This ratio is a crucial metric for assessing a company's overall financial health and investment potential.
An independent expert who appraises the value of property for which there is limited trading. The role is crucial in assessing the value of unique assets, such as antiques in an estate or rarely traded stocks or bonds.
A critical clause in a loan agreement where breaching certain conditions can make the loan immediately repayable. The breaching of any covenant clause, failure to pay, failure to perform other duties and obligations, false representation and warranty, material adverse change, bankruptcy, and alienation of assets all account for events of default.
The likelihood of a specific occurrence affecting a given business or investment. Unlike market or systemic risk, which affects all entities within the same class, event risk is particular to an individual company or portfolio.
Events accounting is a method of accounting wherein data is stored and reported based on specific events, rather than being organized chronologically or by other methods.
Eviction refers to the removal of a tenant from rental property by the landlord through legal processes, usually due to the tenant's failure to comply with the lease agreement or maintain rent payments.
Eviction, actual, refers to the removal of a person from a property, either through force or by legal processes. This action is typically initiated by the property owner or landlord for various reasons, including non-payment of rent or violation of lease terms.
Evidence of Title refers to documents that demonstrate ownership of property, such as deeds, which should be securely stored, such as in a bank vault. It is essential for property transactions and legal clarity.
Ex Ante is a Latin term meaning 'before the event,' often used in finance and economics referring to predictions, forecasts, or estimations about future events.
Ex Gratia Pensions are discretionary payments made by an employer to a retiree, without any formal obligation to do so.
Ex officio is a term referring to rights, privileges, or duties granted by virtue of holding a particular office or position within an organization.
Ex post, derived from the Latin term 'ex post facto', means after the event. It is used commonly in accounting and finance to refer to the collection and analysis of financial data after transactions have taken place. This stands in contrast to ex ante, which refers to predictions or analyses made before events occur.
Ex post facto is a Latin term meaning 'after the fact.' In legal contexts, it refers specifically to laws that make an act punishable as a crime retroactively, where the act was not considered a crime at the time it was committed. Such laws are prohibited by the U.S. Constitution.
Ex-dividend is a stock trading term indicating that a stock is trading without the value of its next dividend payment. Dividends are a portion of a company's earnings distributed to shareholders.
The terms 'X' and 'XD' are symbols used in newspapers and financial reports to signify that a stock or bond is trading without its respective dividend or interest.
The ex-dividend date is a pivotal date in the dividend distribution process on which a stock goes ex-dividend, typically about three weeks before the dividend is paid to shareholders of record. An investor who buys on or after that date is not entitled to the dividend.
A municipal bond that does not have the legal opinion of a bond law firm printed on it, necessitating buyers to be warned that the bond lacks the usual legal opinion.
Ex-rights refers to the period in which a stock is trading without the value of its newly issued rights attached. This typically happens after the record date for the rights issue, when new shares are offered to existing shareholders.
Exact interest is the interest paid by a bank or other financial institution, calculated on the basis of a 365-day year, as opposed to ordinary interest, which is based on a 360-day year.
Examination of Title is a crucial step in the process of buying and selling real estate. It involves investigating the ownership history and any encumbrances related to a specific property to ensure clear and marketable title.
A qualification by an auditor that indicates the financial statements provide a true and fair view, with exceptions noted due to limitations of scope or disagreements in treatment or disclosure that do not warrant an adverse opinion.
Costs or income that affect a company's profit and loss account and need special disclosure due to their unusual size or incidence, despite falling within ordinary activities.
Excess (accelerated) depreciation refers to the accumulated difference between accelerated depreciation claimed for tax purposes and what straight-line depreciation would have been. Generally, excess accelerated depreciation is recaptured as ordinary income upon a sale, instead of receiving more favorable capital gains treatment.
Excess contributions refer to contributions made to a cash or deferred arrangement for highly compensated employees that exceed the limits set by nondiscrimination rules.
An extra federal tax imposed on the earnings of a business, typically during times of national emergency to increase national revenue. Distinguishable from a windfall profits tax designed to prevent excessive corporate profit in special circumstances.
