eTrade 2007 Annual Report Download - page 73

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.
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 that covers 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, 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 trading, investing, 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.
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.
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