A market in which new information is very quickly reflected accurately in share prices.

Emerging Market

The financial markets of developing economies.

Employee Retirement Income Securities Act (ERISA)

A 1974 law governing the operation of most private pension and benefit plans. This law eased pension eligibility rules, set up the Pension Benefit Guaranty Corporation, and established guidelines for the management of pension funds.

Employee Stock Fund

A firm sponsored program that enables employees to purchase shares of the firm’s common stock on a preferential basis.

Employee Stock Ownership Plan (ESOP)

A Company makes a tax-deductible contribution to a trust fund that buys company stock or ADRs on behalf of their employees, which increases the employees’ ownership of their shares.

Employee Stock Purchase Plan

Participating employees purchase company stock or ADRs with post-tax income using either payroll deductions or lump-sum payments.

Equity

Represents ownership interest in a firm. Also, the value of the common stockholders’ equity in a company as listed on the balance sheet.

Euroclear/Clearstream Bridge

An electronic trading and settlement link between the two depositories

Euroclear

One of two principal clearing systems in the Eurobond market. An international clearing organization, which began operations in 1968, and is located in Brussels. The Euroclear system is responsible for holding (custody), clearing and settling internationally traded securities. The system is owned by about 2,000 users.

Exchange

The marketplace in which shares, options, and futures on stocks, bonds, commodities and indices are traded. The principal US stock exchanges are New York Stock Exchange (NYSE), American Stock Exchange (AMEX) and the National Association of Securities Dealers Automatic Quotation System (NASDAQ).

The Exchange

A nickname for the New York Stock Exchange. Also known as the Big Board. More than 2,000 common and preferred stocks are traded. The exchange is the oldest in the United States, founded in 1792, and the largest. It is located on Wall Street in New York City.

Exchange Agent

The Bank providing the agency service of accepting presentations from investors of one security in the market in exchange for a different security.

Exchange Controls

Governmental restrictions on the purchase of foreign currencies by domestic citizens or the purchase of the local domestic currency by foreigners.

Exchange of Assets

Acquisition of another company by purchase of its assets in exchange for cash or stock.

Exchange of Stock

Acquisition of another company by purchase of its stock in exchange for cash or shares.

Exchange Offer

An offer by the firm to give one security, such as a bond or preferred stock, in exchange for another security, such as shares of common stock.

Exchange Rate

The price of one country’s currency expressed in another country’s currency.