A stock index comprised of companies related to the actress Eva Longoria. Some analysts believe that Eva Longoria has enough influence over consumers that her endorsements will materially affect product sales. Taobiz explains Eva Longoria Stock Index On the popular television show "Desperate Housewives", Longoria often promotes consumer goods. Outside of acting, she has endorsement deals with companies such as Hanes, Bebe and L'Oreal. These companies are included in the Eva Longoria Stock Index, under the premise that her fans will increase the revenues of the promoted products.
A negotiable security (receipt) that is issued by a European bank, and that represents securities which trade on exchanges outside of the bank’s home country. Abbreviated as "EDRs", these securities are traded on local exchanges and used by banks - and issuing companies in the U.S. and other countries - to attract investment capital from the European region. Also known as "Euro Depository Receipts", which may or may not imply that the euro is the currency the receipt is issued upon. Taobiz explains European Depository Receipt - EDR While the euro isn’t the only currency that can be used to issue and trade European Depository Receipts, it is the most common because of its widespread adoption in Europe. American Depository Receipts (ADRs) are the equivalent of this type of bank receipt in the U.S. Investors in EDRs are entitled to the same dividends and capital gains as the investors who hold common shares in the same company.
A type of risk measurement technique that uses historic returns to predict the riskiness of a certain investment in the future. This type of risk measure is the equivalent of the statistical variance of an asset's returns relative to its mean. Taobiz explains Ex-Post Risk Using historic returns as a measure of future risk has been a traditional method used by investors to determine the riskiness of a given asset. Ex-post risk is often used in value at risk analysis - a tool used to give investors a best estimate of the maximum amount of loss that they could expect to incur on any given trading day.
A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be given ex-dividend status if a person has been confirmed by the company to receive the dividend payment. Watch: Dividend Taobiz explains Ex-Dividend A stock trades ex-dividend on or after the ex-dividend date (ex-date). At this point, the person who owns the security on the ex-dividend date will be awarded the payment, regardless of who currently holds the stock. After the ex-date has been declared, the stock will usually drop in price by the amount of the expected dividend.
The date on or after which a security is traded without a previously declared dividend or distribution. After the ex-date, a stock is said to trade ex-dividend. Taobiz explains Ex-Date This is the date on which the seller, and not the buyer, of a stock will be entitled to a recently announced dividend. The ex-date is usually two business days before the record date. It is indicated in newspaper listings with an x.
A term that refers to future events, such as future returns or prospects of a company. Using ex-ante analysis helps to give an idea of future movements in price or the future impact of a newly implemented policy. Taobiz explains Ex-Ante An example of ex-ante analysis is when an investment company values a stock ex-ante and then compares the predicted results to the actual movement of the stock's price. In Latin it means "before the event".
An employee option plan that grants additional shares to the plan every year. Also known as an "evergreen plan". Taobiz explains Evergreen Option The number of shares granted to the plan is determined by a set percentage of the company's common shares outstanding. In most cases, these plans don't have an expiry date and do not require shareholder approval.
A type of exotic equity option belonging to a class known as mountain range options. The value of an Everest option is based on a basket of underlying securities, as opposed to the typical listed option which has just one underlying asset. Everest options are in effect for very long time periods – up to 10 years or more – and the payoff of the option is based on the aggregate performance of the worst-performing stock over the full time period. Taobiz explains Everest Option Everest options are created by - and for - large institutional investors, like hedge funds and investment banks. These very intricate options may contain between 15 and 25 stocks, which can make them difficult to fairly value. An investor could be devastated by one bad stock among a group of otherwise great performers over the life of an Everest option. If 14 out of 15 stocks were to quadruple in value but the remaining stock dropped 10% over the full period, the option would only recognize the performance of the latter in its payout!