What Is Embedded Value? Embedded value (EV) is a common valuation measure used mainly by life insurance companies outside of North America to estimate the consolidated value of shareholders’ interest in an insurance company. Embedded value, also known as market consistent embedded value (MCEV), is calculated by adding the present value of future profits of a firm
What Is Embezzlement? Embezzlement refers to a form of white-collar crime in which a person or entity intentionally misappropriates the assets entrusted to them. In this type of fraud, the embezzler attains the assets lawfully and has the right to possess them, but the assets are then used for unintended purposes. Embezzlement is a breach of
What Is an Embossed Card? An embossed card is an electronic payment card with imprinted or stamped payment card details that can be felt above the card’s surface for taking a physical impression. Embossed details on credit cards and debit cards typically include the cardholder’s name and the card number. How Embossed Cards Work As
What Is Equity Market Capitalization? Equity market capitalization is an aggregate calculation that measures the total value of the entire equity market. This value is calculated by taking the individual market capitalizations of all available companies in the equity market and adding them together to arrive at the capitalization for the market as a whole.
What Is Europe, Middle East, and Africa (EMEA)? Europe, Middle East, and Africa (EMEA) is a geographical grouping and an acronym widely used by global corporations to define regional business activity. It is a shorthand method to refer to the three continents and their regional areas. Key Takeaways Europe, Middle East, and Africa (EMEA) refer
What Is an Effective Annual Interest Rate? An effective annual interest rate is the real return on a savings account or any interest-paying investment when the effects of compounding over time are taken into account. It also reflects the real percentage rate owed in interest on a loan, a credit card, or any other debt. It
What Is Effective Net Worth? Effective net worth is shareholders’ equity, the amount that would be returned to stockholders if all of a company’s assets were liquidated and all its debts repaid, plus subordinated debt, unsecured loans or bonds that rank lowest with respect to claims on assets or earnings. Adding subordinated debt, in effect, increases
What Is the Effective Tax Rate? The term effective tax rate refers to the percent of income that an individual or corporation owes/pays in taxes. The effective tax rate for individuals is the average rate at which their earned income, such as wages, and unearned income, such as stock dividends, are taxed. The effective tax
What Is the Effective Yield? The effective yield is the return on a bond that has its interest payments (or coupons) reinvested at the same rate by the bondholder. Effective yield is the total yield an investor receives, in contrast to the nominal yield—which is the stated interest rate of the bond’s coupon. Effective yield
What Is Efficiency? The term “efficiency” refers to the peak level of performance that uses the least amount of inputs to achieve the highest amount of output. Efficiency requires reducing the number of unnecessary resources used to produce a given output, including personal time and energy. Efficiency is a measurable concept that can be determined using
