floating rate). Related: Interest rate swap. Equityholders Stockholders; those holding shares of the firm'sequity. Equivalent annual annuity The amount per year for some number of years that has a present value equal to a given amount. Equivalent annual benefit The annual annuity with the same value as the net present value of an investment project. Equivalent annual cash flow Annuity with the same net present value as the company's proposed investment. Equivalent annual cost The cost per year of owning an asset over its entire life. Equivalent bond yield Effective annual yield on a short-term, noninterest-bearing security calculated for comparison to yields quoted on coupon securities. Equivalent loan Given the after-tax stream associated with a lease, the maximum amount of conventional debt that the same period-by-period after-tax debt service stream is capable of supporting. Equivalent taxable yield The yield that must be offered on a taxable bondissue to give the same after-tax yield as a tax-exempt issue. Erosion A negative impact on one or more of a firm's existing assets. Escalator clause Provision in a contract allowing cost increases to be passed on. In an employment contract, for example an escalator clause may call for wage increases in line with inflation. Escheat Reversion of monies or securities to the state in which the securityholder was last known to reside, when no claim by the securityholder has been made after a certain period of time fixed by state law. This is known as the holding period or cut-off date. Escheat Period The period of elapsed time required by applicable state law for property to be presumed abandoned. Escheatment The process of turning over unclaimed or abandoned property to a state authority. Escheatment laws require mutual funds to turn over uncashed or returned check dollars and/or client account fund shares if the owner cannot be located within a length of time determined by each state. Escrow Property or money held by a third party until the agreed upon obligations of a contract are met. Escrow receipt A document provided by a bank in optionstrading to guarantee that the underlying security is on deposit and available for potential delivery. Escrowed to Maturity (ETM) Holding of the proceeds from a new bondissue to pay off an existing bondissue at its maturation date. Essential purpose (or function) bond See: Public purpose bond Estate planning The preparation of a plan to carry out an individual's wishes as to the administration and disposition of his/her property before or after his/her death. Estate tax A federal or state tax imposed on an individual's assets inherited by heirs. Estimated tax Tax to be paid quarterly on income that is not subject to withholding tax, including self-employed income, investment income, alimony, rent, and capital gains. Ethical fund See: Social conscious mutual fund. Ethics Standards of conduct or moral judgment. Euclidean Geometry The Plane geometry learned in high school, based upon a few ideal, smooth, symmetric shapes. Euro Originally, the term for a deposit made outside one's home country but denominated in the home country currency. This terminology is confusing now since the