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Welcome to our Glossary section! We are very happy to see you here! This is the place where we will do our best to include as many terms from the accounting and financial world as possible so that we fully respond to your research and business needs.

Our team will constantly work on the content so that we make sure that you always stay satisfied with the information you obtain. We have sorted the terms alphabetically so that it is convenient for you to navigate through the section. In addition, we have integrated a special division dedicated to curious terms from the stock market. We hope you find them as much enjoyable as we do.

Sb Team wishes you a pleasant and fruitful navigation through our Glossary section!

EBITDA: A profit before taxation, amortization and before interest rates are applied. This indicator ignores to a certain extent the subjective decisions of the management when managing the company, which can influence the final financial result. The influence of the type of financing and the method of amortization are also not included in it. It should be noted that managerial decisions can influence the objects which are included in the calculation.

Externality: A cost or profit, arisen from the commercial activity which is not included into the market value of its results. A good example for this is the toxic waste from the industrial manufacturing or the increase into the labour productivity due to the employees’ higher qualification, for which the company has not made any costs.

Euroequity: Stocks issued in foreign currency and sold outside of the issuer’s country.

Expansive fiscal policy: A fiscal policy, directed towards stimulating the economic growth through tax relieves and increase of the government costs.

Expansion: A relatively long phase of the economic cycle which is characterized by an increase in the real GDP. It comes after the period of depression.

Efficiency of capital: A measure for investment’s profitability which puts together the volume of the production with the invested for it capital.

Economies of scale: An increase of the productivity or a decrease into the average manufacturing costs as a result of the increase in the volume of all producing factors.

Economic Integration: A process of rapprochement and interrelation between national economies which result is their more productive functioning.

Economic profit: Profit which is above the normal. This is the difference between the income and the maintenance of the company.

Employment: A percentage ratio between the number of the employed and the number of the capable of working people in the country.

Expectations: A concept regarding the uncertainty of the variables in the future, such as the interest rates, prices or taxes. The expectations for their future performance influence the investors’ behavior on the market.

Economic benefit: Achieving, directly or indirectly, during the utilization of the long-term assets an increase of the revenue and decrease of the expenses.

Economic life: The period in which a certain asset is expected to be economically useable by one or more enterprises.

Events after the end of the reported period: Favorable or unfavorable events which occur between the end of the reported period and the date on which the financial statements are approved for publishing.

Expenses for taking out from use: Additional costs directly related to the take out of use of a certain asset.

Economically related persons: A group of persons, one of which directly or indirectly owns more than 50% of the other’s capital or which has a participation which ensures a majority when making decisions or prevents making decisions.

Excise: An internal tax or duty on certain commodities, as liquor or tobacco, levied on their manufacture, sale, or consumption within the country.

Exotic currency: Relatively rarely traded currencies.

European Central Bank (ECB): The central bank responsible for the monetary policy of the European Union and the currency euro. The bank was established in Germany in 1998 and works in cooperation with the national banks of the EU member states.

Economic indicator: The economic indicators serve as barometers for measuring the economy’s growth. Examples for such indicators are the GDP, the index of the consumers’ prices, the cash supply, the trading balance, the unemployment level, etc.

External debt: The amount of one country’s obligations on uncleared external debts together with the unpaid interest. The external debt is formed by the country’s debts to international and foreign banks and other countries’ governments. It can be current – which payment period is in the current budget year and capital – which payment period hasn’t occurred yet.

Economic crisis: A phase of the economic cycle. It is characterized by difficulties with the goods’ placement, prices’ decrease, abrupt reduction in production, increase in the unemployment levels, decrease in the work salaries, massive bankruptcy of industrial, trading and banking companies, significant reduction in the consumers’ demand, etc.