← All Glossary Earnings Per Share (EPS) A company's net profit divided by its outstanding shares, indicating profitability on a per-share basis and widely used in valuation metrics like P/E ratio. EBITDA Earnings Before Interest, Taxes, Depreciation, and Amortization — a measure of a company's operational profitability and cash flow from core operations. EDGAR The SEC's Electronic Data Gathering, Analysis, and Retrieval system providing free public access to corporate filings including annual reports, quarterly reports, and proxy statements. Efficient Frontier A set of optimal portfolios offering the highest expected return for a given risk level, a core concept in Modern Portfolio Theory by Harry Markowitz. Efficient Market Hypothesis (EMH) A theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the market through active management. Employee Stock Ownership Plan (ESOP) A qualified retirement plan where employees receive company stock as a primary benefit, aligning worker interests with shareholder value through ownership. ERISA A 1974 federal law setting minimum standards for private pension and health plans, requiring fiduciary responsibility, participant disclosure, and plan funding rules. Escrow A financial arrangement where a third party holds funds or documents on behalf of two parties in a transaction, releasing them only when specific conditions are met. ESG Investing An investment approach incorporating Environmental, Social, and Governance factors into decision-making alongside traditional financial analysis. ETF (Exchange-Traded Fund) A pooled investment security that tracks an index, sector, commodity, or asset class and trades on stock exchanges like individual stocks, offering diversification at low cost. Ethereum A decentralized blockchain platform enabling smart contracts and decentralized applications (dApps), with its native cryptocurrency Ether (ETH) powering the network. Expense Ratio The annual fee charged by a mutual fund or ETF as a percentage of assets under management, covering management fees, administrative costs, and operational expenses.
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