Investor Education

Investor Glossary

Terms beginning with 'E'

Early Retirement
Retiring at any age below the Plan’s normal retirement age. This may also be due to ill-health.

See also: Normal Retirement Age

Earnings Per Common Share (EPS)
The net income of a company, minus any preferred dividend requirements, divided by the number of outstanding common shares. EPS provides the investor or potential investor with information on the stability of dividends and capital-gains potential. It is considered on of the most important indications of the value of common stock.

Employee
An individual, employed to do work or to provide a service, who is in receipt of or entitled to remuneration for the work or service.

Employer
The person or body with whom the member of a Pension Plan has a contract of employment relevant to that Plan.

Equity or Net Worth
Assets minus liabilities.

Escalation
A system whereby pensions in payment and/or preserved benefits are increased regularly at a fixed or variable percentage rate. The percentage increase applied may be limited to the increase in a specified index. Escalation may be promised and paid for in advance of retirement, or may be granted on a discretionary basis after retirement takes place.

See also: Preserved Benefit

Estate
A person’s total worth as determined by his or her vested interests in property and other assets, exclusive of liabilities.

Eurobond
A bond that may be denominated in dollars or some other currency but must be traded internationally.

Executor
The person appointed to carry out the provisions of a will.


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