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Category: E

Externality of Production

Definition An externality of production refers to the indirect effect, either positive or negative, that production processes have on third parties or the environment which

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Extraordinary Item

Definition Extraordinary Item is a financial term referring to gains or losses in a company’s financial statements that are infrequent and unusual. These are significant,

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Externality

Definition An externality in finance refers to the indirect impact of an economic activity on parties that did not choose to be involved in that

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External Debt

Definition External debt refers to the total debt a country owes to foreign creditors. It includes money borrowed from foreign banks, governments, or international financial

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Extrinsic Value

Definition Extrinsic value, in finance, refers to the portion of an option’s price that is not intrinsic and is instead based on external, variable factors.

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Elastic

Definition The term “elastic” in finance refers to a situation where the demand or supply for a good or service is sensitive to changes in

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