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Glossary

Earnings

A company’s profits produced over a specified period, usually 3 months.

Earnings Momentum

Term applied to accelerated or declining revenue growth in Earnings Per Share. 

Earnings Per Share (EPS)

An indicator for a company’s profitability. The profits of a company divided by the number of outstanding shares of common stock.

Earnings Report

A financial statement released by a company quarterly detailing all earnings and expenses supporting a profit or loss.

ECN

Electronic Communications Network. A computerized system outside of the market that manages direct transactions between major brokers and individual traders (no middleman). Currencies and stocks are primarily traded on ECNs.

Economic Indicator

A statistic used by investors to evaluate future trends in a nation’s economy.

Elliott Wave Theory

Formulated by Ralph Nelson Elliott, it is based on the philosophy that the stock market could be forecast through the study of a repetitive pattern of waves.

Emini

An electronically traded futures contract on the Chicago Mercantile Exchange that represents a portion of the normal futures contracts

Equity

A common stock shareholder’s ownership interest in a company.

Equity Option

An equity derivative that provides the right, but not the obligation, to buy or sell a quantity of stock at a specific price, within a specific period of time.

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