eTrade 2008 Annual Report Download - page 81

GLOSSARY OF TERMS
Active Trader—The customer segment that includes those who execute 30 or more trades per quarter.
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 average total assets—Average total shareholders’ equity divided by average total assets.
Bank—ETB Holdings, Inc. (“ETBH”), the entity that is our bank holding company and parent to E*TRADE
Bank.
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.
Contract for difference—A derivative based on an underlying stock or index that covers the difference
between the nominal value at the opening of a trade and at the close of a trade. A contract for difference is
researched and traded in the same manner as a stock.
Corporate cash—Cash held at the parent company as well as cash held in certain subsidiaries that can
distribute cash to the parent company without any regulatory approval.
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, customer payables 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 brokerage and banking 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.
Enterprise interest-bearing liabilities—Liabilities such as customer deposits, repurchase agreements, other
borrowings and advances from the FHLB, certain customer credit balances and stock loan programs on which the
Company pays interest; excludes customer money market balances held by third parties.
Enterprise interest-earning assets—Consists of the primary interest-earning assets of the Company and
includes: loans, net, mortgage-backed and available-for-sale securities, margin receivables, stock borrow
balances, and cash required to be segregated under regulatory guidelines that earn interest for the Company.
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