What Is an Exercise Price? The exercise price is the price at which an underlying security can be purchased or sold when trading a call or put option, respectively. It is also referred to as the strike price and is known when an investor initiates the trade. An option gets its value from the difference between the
What Is an Ex Gratia Payment? An ex gratia payment is made to an individual by an organization, government, or insurer for damages or claims, but it does not require the admittance of liability by the party making the payment. An ex gratia payment is considered voluntary because the party making the payment is not obligated to compensate the
What Is an Exhaustion Gap? An exhaustion gap is a technical signal marked by a break lower in prices (usually on a daily chart) that occurs after a rapid rise in a stock’s price over several weeks prior. This signal reflects a significant shift from buying to selling activity that usually coincides with falling demand
What Are Existing Home Sales? Existing home sales transaction data measure and report sales and prices of existing single-family homes, condos, and co-ops for the United States, and is broken down by region—West, Midwest, South, and Northeast. This metric can be contrasted with new home sales and housing starts, which both track newly built homes
What Is an Exit Point? An exit point is the price at which an investor or trader closes a position. An investor will typically sell to exit their trade because they are buying assets for the long term. A trader may also sell at an exit point, or they may decide to buy to close
What is Ex-Legal? Ex-Legal is a municipal bond that is delivered without a bond law firm’s legal opinion printed on it. Key Takeaways Ex-Legal is a municipal bond that is delivered without a bond law firm’s legal opinion printed on it.Ex-legal bonds are more prone to legal risk than bonds with legal opinions.Ex-legal bonds may
WHAT IS Exoneration Exoneration means to free someone from blame or guilt; in the financial realm, exoneration usually means to relieve someone of a financial obligation or duty. This can apply in many different areas of finance, such as taxation or mortgages. BREAKING DOWN Exoneration An important application of exoneration occurs in the settling of
What is an Exotic Currency? Exotic currencies are currencies that are thinly traded in foreign exchange markets and are not widely used in global financial transactions. Key Takeaways Exotic currencies are currencies that are thinly traded in foreign exchange markets and are not widely used in global financial transactions.Exotic currencies are illiquid, lack market depth
What Is Expansion? Expansion is the phase of the business cycle where real gross domestic product (GDP) grows for two or more consecutive quarters, moving from a trough to a peak. Expansion is typically accompanied by a rise in employment, consumer confidence, and equity markets and is also referred to as an economic recovery. Key Takeaways Expansion
What Is an Excess Judgment Loss? An excess judgment loss is the additional amount that an insurance company must pay above the policy limit. These judgments are often due to actions on the part of the insurer that a court finds to be in violation of good business practices. Key Takeaways The additional amount that
