GCPA Glossary

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EAFE International
EAFE(R) International is one of the most widely used benchmarks by international portfolio managers. This is an index created by Morgan Stanley Capital International to track the devlopment markets of Europe, Australia and the Far East. It is widely used as the target to beat for global investing. An index is unmanaged and you cannot invest directly in an index.

Earnings growth
Earnings growth is the increase in the annual net income of a company. Companies whose earnings are growing at a higher than average rate possess greater potential for an increase in stock share price.

Elimination period
The policy deductible, or the amount of time (usually a number of days) the insured elects to wait before disability or long term care benefits are paid. Typically, the longer an individual can wait before receiving funds from the insurance company, the lower the price of the policy.

Endorsement
An endorsement is an addition to your policy.

Equity
Ownership in property or securities. Generally refers to an asset's market value minus debts against it.

ERISA
Employee Retirement Income Security Act of 1974.

Execution
The term used to describe the completion of a transaction in which a stock is sold by a broker and purchased by a shareholder.

Expenses
Mutual fund shareholders pay expenses that go towards the operation and management of a fund. Refer to a fund's prospectus for complete information on risks, fees and expenses.

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