InvestorWords.com

EAD. The expected amount of loss that a bank would be exposed to when a debtor defaults on a loan from that bank. To get an idea of their risk, banks will often calculate an EAD value for each loan, and use those resulting figures to get an idea of their overall risk.

• Introduction to Stock Exchanges and the NYSE
• What is a Sole Proprietorship?
• Fees and Expenses
• Equity Derivatives
• An Overview of Retirement Planning
• How to Sell a House

Featured Advertiser