eTrade 2006 Annual Report Download - page 67

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GLOSSARY OF TERMS
Active Trader—The customer segment that includes those who execute 30 or more trades per quarter and
have base pricing of $6.99 to $9.99 per trade.
Adjusted total assets—Bank-only assets composed of total assets plus/(less) unrealized losses (gains) on
available-for-sale securities, less deferred tax assets, goodwill and certain other intangible assets.
Average commission per trade—Total retail segment commission revenue divided by total number of retail
trades.
Average equity to total banking assets—Average total banking shareholder’s equity divided by average total
banking assets.
Bank—ETB Holdings, Inc. (“ETBH”), the entity that is our bank holding company and parent to E*TRADE
Bank and ETGAM.
Bank net operating interest spread—The difference between the weighted-average yields earned on interest-
earning banking assets and the weighted-average yields paid on interest-bearing banking liabilities.
Basis point—One one-hundredth of a percentage point.
Cash flow hedge—A financial derivative instrument designated in a hedging relationship that mitigates
exposure to variability in expected future cash flows attributable to a particular risk.
Charge-off—The result of removing a loan or portion of a loan from an entity’s balance sheet because the
loan is considered to be uncollectible.
Clearing and servicing expense—A predominantly variable expense associated with our trading products
and the servicing expense associated with our loan products.
Compensation and benefits as a percentage of revenue—Total compensation and benefits expense divided
by total net revenue.
Contract for difference (“CFDs”)—A derivative based on an underlying stock or index to exchange the
difference between the nominal value at the opening of a trade and at the close of a trade. A CFD is researched
and traded in the same manner as a stock.
Corporate investments—Primarily equity investments held at the parent company level that are not related
to the ongoing business of the Company’s operating subsidiaries.
Customer cash and deposits—Customer cash, deposits, free credits and money market balances, including
those held by third parties.
Daily average revenue trades (“DARTs”)—Total revenue trades in a period divided by the number of
trading days during that period.
Derivative—A financial instrument or other contract the price of which is directly dependent upon the value
of one or more underlying securities, interest rates or any agreed upon pricing index. Derivatives cover a wide
assortment of financial contracts, including forward contracts, options and swaps.
E*TRADE Complete—An integrated investing, trading, banking and lending product that allows customers
to manage their relationships with the Company through one account. E*TRADE Complete helps customers
optimize cash and credit by utilizing tools designed to inform them of whether or not they are receiving the most
appropriate rates for their cash and paying the most appropriate rates for credit.
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