Page 57 - PRIAA Glossary
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EARLY EXERCISE
For non-European options (i.e., American and Bermudan options), the exercise of an option contract before its expiration date.
EARNINGS PER SHARE
A financial ratio measuring a company’s nominal value of profits that are distributable to each outstanding unit of common stock. It is a measure of profitability and can give a view of the comparative earning power of companies. Steadily increasing earnings per share indicates improving earning power, but it can be susceptible to earnings manipulation.
EFETNET
A system established by the European Federation of Energy Traders (EFET) to automate trading and information exchange among EFET members.
EFETNET B.V.
An independent company that is 1% owned by the EFET. It was set up in 2004 by EFET to serve energy trading firms and is intended to deliver the benefits of electronic data exchange standardisation. It provides solutions for meeting regulatory requirements around clearing, reporting, portfolio reconciliation and electronic confirmation matching.
EFFECTIVE DATE
The date on which obligations under a derivative transaction begin to accrue or take effect.
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