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Earnings or Income Statement
A financial statement which shows a company's revenues and expenditures resulting in either a profit or a loss during a financial period.

Earnings Per Common Share
The portion of after-tax profits of a company attributable to a single common share.

Equipment Trust Certificate
A security, more common in the U.S. than in Canada, that is generally issued by a railroad or airline to pay for new moveable equipment. It is secured by a first lien on the equipment.

Equities
The stock, or ownership of shareholders in a company.

Equity Earnings
A company's share of an unconsolidated subsidiary's earnings. The equity accounting method is used when a company owns 20% to 50% of a subsidiary.

Escrowed or Pooled Shares
Outstanding shares of a company which, while entitled to vote and receive dividends, may not be bought or sold unless special approval is obtained. This technique is commonly used by mining and oil companies when treasury shares (authorized but unissued shares) are issued for new properties. Shares can be released from escrow (freed to be bought and sold) only with the permission of applicable authorities such as the stock exchange and/or the provincial securities commission.

Estate Planning
The process of planning the transfer of all personal assets at death to chosen beneficiaries.

Ex Dividend
This means "without dividend." If a share quoted ex dividend is purchased, the investor is not entitled to an upcoming already-declared dividend. The seller receives this dividend.

Ex Rights
This means "without rights." Buyers of shares quoted ex rights are not entitled to forthcoming rights.

Exchange Fund Account
A special federal government account operated by the Bank of Canada to intervene in the world's foreign exchange markets and affect Canada's foreign exchange rate. Direct intervention to change the direction of exchange rate fluctuations is infrequent, and public economic policies are more significant in changing supply and demand for foreign exchange, and therefore the exchange rate.

Exempt List
Large professional buyers of securities, mostly financial institutions, that are offered a portion of a new issue by one member of the banking group, on behalf of the whole syndicate.

Exempt Market
An unregulated market for sophisticated participants in government bonds, corporate issues and commercial paper. A prospectus is not required to raise money privately from these private investors (largely institutions, but also individual investors) and registration of the issue with a securities commission is not needed.

Exempt Purchaser
A category of institutional investors to which the sale of a new issue of securities does not require the issuer to file a prospectus with the applicable securities commission.

Exercise
The action taken by the holder of a call option if he or she wishes to purchase the underlying security, or by the holder of a put option if he or she wishes to sell the underlying security. Also refers to the action taken by a rights or warrant holder.

Exercise Price
The price at which the underlying stock of a call option can be purchased, or the price at which the underlying stock of a put option can be sold. Also referred to as the strike price.

Expiration Date
The date when put and call options and rights and warrants expire, as well as other privileges or conversion features.

Extendible Bond or Debenture
A bond or debenture issued with a specific maturity date, but granting the holder the option to extend the maturity date by a specified number of years.

Extra
Short for "extra dividend." A dividend in the form of either stock or cash in addition to the regular common dividend the company usually pays to shareholders. Also referred to as a special dividend.