Investor Education
Glossary
Earnings Per Share
A corporation's net income available for common stock divided by its number of shares of common stock outstanding.
Ex-Dividend Date
A date set on which a given stock will begin trading in the marketplace without the value of a pending dividend included in the contract price. It is normally 2 business days before the record date, except on mutual funds where it is the date set by the issuer or principal underwriter.
Exchange Privilege
The right to exchange the shares of one open-end fund, or class of fund, for those of another under the same sponsorship at net asset value. For tax purposes, such an exchange is considered a sale and new purchase.
Expense Ratio
A ratio for comparing the efficiency of a mutual fund by dividing the fund's expenses by its net assets.