What Is the European Economic and Monetary Union (EMU)? The European Economic and Monetary Union (EMU) combines several of the European Union (EU) member states into a cohesive economic system. It is the successor to the European Monetary System (EMS). Note that there is a difference between the 19-member European Economic and Monetary Union (EMU), and
What Is Encryption? Encryption secures digital data using one or more mathematical techniques known as cryptography. The information input becomes unreadable through encryption as an algorithm converts the original text, known as plaintext, into an alternative form known as ciphertext. When an authorized user needs to read the data, they may decrypt the data using
What Is an Encumbered Security? Encumbered securities (or encumbered assets) are securities that are owned by one entity, but which are at the same time subject to a legal claim by another. A lien is a common example of a en encumbrance placed on a property that still has outstanding debts owed to creditors, such
What Is an Encumbrance? An encumbrance is a claim against a property by a party that is not the owner. An encumbrance can impact the transferability of the property and restrict its free use until the encumbrance is lifted. The most common types of encumbrance apply to real estate; these include mortgages, easements, and property
What Is an End Loan? An end loan is a specific type of long-term loan an individual procures to pay off a short-term construction loan or other interim financing structure. Such short-term loans are used by builders as start-up financing to launch the construction of homes or other real estate properties. Key Takeaways End loans
What Is an Endogenous Variable? An endogenous variable is a variable in a statistical model that’s changed or determined by its relationship with other variables within the model. In other words, an endogenous variable is synonymous with a dependent variable, meaning it correlates with other factors within the system being studied. Therefore, its values may
What Is an Endowment? An endowment is a donation of money or property to a nonprofit organization, which uses the resulting investment income for a specific purpose. An endowment can also refer to the total of a nonprofit institution’s investable assets, also known as its “principal” or “corpus,” which is meant to be used for
What Is the Endowment Effect? The endowment effect refers to an emotional bias that causes individuals to value an owned object higher, often irrationally, than its market value. Key Takeaways The endowment effect describes a circumstance in which an individual places a higher value on an object that they already own than the value they
What Is End-to-End? End-to-end describes a process that takes a system or service from beginning to end and delivers a complete functional solution, usually without needing to obtain anything from a third party. It often refers to vendors that can see a project through from beginning to end, and supply everything needed to create a
What is Enduring Purpose? An enduring purpose is a public statement regarding a company’s core principles, defining values, as well as its short- and long-term goals. An enduring purpose is similar in many ways to a mission statement and serves to provide a guide as to the company’s past and present direction. An enduring purpose
