What is an Efficiency Ratio? The efficiency ratio is typically used to analyze how well a company uses its assets and liabilities internally. An efficiency ratio can calculate the turnover of receivables, the repayment of liabilities, the quantity and usage of equity, and the general use of inventory and machinery. This ratio can also be
What Is the Efficient Frontier? The efficient frontier is the set of optimal portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return. Portfolios that lie below the efficient frontier are sub-optimal because they do not provide enough return for the
What Is the Efficient Market Hypothesis (EMH)? The efficient market hypothesis (EMH), alternatively known as the efficient market theory, is a hypothesis that states that share prices reflect all information and consistent alpha generation is impossible. According to the EMH, stocks always trade at their fair value on exchanges, making it impossible for investors to
What Is the Electronic Federal Tax Payment System (EFTPS)? The Electronic Federal Tax Payment System (EFTPS) is a service provided by the U.S. Department of the Treasury. The service allows taxpayers to make tax payments either by telephone or online. This system is accessible every day of the week, 24 hours a day. EFTPS can
What Is Egalitarianism? Egalitarianism is a philosophical perspective that emphasizes equality and equal treatment across gender, religion, economic status, and political beliefs. Egalitarianism may focus on income inequality and distribution, which are ideas that influenced the development of various economic and political systems. Egalitarianism also looks at how individuals are treated under the law. Karl Marx used egalitarianism
What Is an Extraordinary General Meeting? An extraordinary general meeting (EGM) is a shareholder meeting called other than a company’s scheduled annual general meeting (AGM). An EGM is also called a special general meeting or emergency general meeting. Key Takeaways An extraordinary general meeting (EGM) refers to any shareholder meeting called by a company other than
What Is EGTRRA? The Economic Growth and Tax Reconciliation Relief Act of 2001 (EGTRRA) is a U.S. tax law signed by President George W. Bush that made significant changes to retirement plan rules and overall tax rates. The law was passed with a sunset provision to end in 2010 but was extended and is widely
What Is the Emirates Interbank Offered Rate (EIBOR)? The Emirates Interbank Offered Rate, known by its abbreviation EIBOR, is the benchmark interest rate, stated in UAE dirham, for lending between banks within the United Arab Emirates (UAE) market. The dirham is the unit of currency in the UAE. The EIBOR is also the reference rate
What is eIDV (Electronic Identity Verification) eIDV (Electronic Identity Verification) makes use of publicly available data as well as private databases to quickly verify the identity of an individual. eIDV uses personal information such as name, date of birth, Social Security number, and address among other data fields. The result of an eIDV search on an individual’s identity
What Is the Einhorn Effect? The term Einhorn effect refers to the sharp movement of a public company’s share price in response to comments or trading activity by hedge fund manager David Einhorn. Einhorn is the president and co-founder of Greenlight Capital. The phenomenon usually applies to the drastic drop in share prices immediately after Einhorn
