Letter R Dictionary

R&D

Acronym for Research And Development. Discovering new knowledge about products,…

r-squared

Statistical measure of correlation between a portfolio’s performance and the…

raid

A trader’s attempt to force down the price of a particular security, generally by heavy selling. Also known as bear raid.

raider

An individual or entity attempting to acquire enough equity in a target firm…

raincheck

A seller’s commitment to sell an out-of-stock item at the advertised price as soon as it becomes available.
rainmaker

rainmaker

An employee who creates a significant amount of new business to a firm. This…

raise

An increase in salary.A raise is given to an employee by an employer. It may…

rally

A substantial rise in the price of a currency, stock, commodity, bonds, or overall…

ramp up

To increase, as with activity or production.

random walk theory

An investment theory which claims that market prices follow a random path up…

range

Range refers to the area between high and low prices a currency pair tends to…

Range Expansion Index (REI)

The Range-Expansion Index (REI) is a technical indicator derived from historical…

range trading

A strategy that involves buying as price moves to lower support levels, and…

ranking

Comparison of an investment’s performance to others over a given time period.

rate

Rate – A value describing one quantity in terms of another quantity. 1 Most…

rate card

A price list for advertising time or space.

rate covenant

A covenant in a municipal revenue bond that specifies how it will be determined…

rate-improvement

A fixed-rate mortgage provision which gives the borrower a one-time option to…

rate lock

A commitment by a lender guaranteeing a specified interest rate for a specified period of time. Also known as lock-in.

Rate of Change

ROC is a momentum indicator that measures velocity and also leads the price…

rate of exchange

The rate at which one currency may be converted into another. Generally, one…

rate of return

The annual rate of return on an investment, expressed as a percentage of the total amount invested. Also known as return.

ratify

To approve or confirm.

rating

See bond rating, credit rating, stock rating.

rating service

A firm that publishes ratings for securities such as preferred stock and debt…

ratio

The value of one item relative to another.Commonly taking the form of a fraction…

ratio analysis

The study and interpretation of the relationships between various financial variables, by investors or lenders.

ratio calendar combination

An options strategy in which a trader has a ratio calendar spread using calls and a ratio calendar spread using puts, simultaneously.

ratio calendar spread

An options strategy using either puts or calls, in which one buys long-term…

ratio spread

An options strategy using either puts or calls, in which one buys some options and then sells a different amount of options.

ratio write

An options strategy in which a trader writes multiple option contracts per 100 shares of stock owned or shorted.

raw land

Undeveloped, unused land.

raw materials

Unfinished goods consumed by a manufacturer in providing finished goods. Classified…

Raw Materials Price Index (RMPI) – Canada

Measures the prices paid by Canadian manufacturers for key raw materials, including…

RBA Governor Speaks – Australia

The Reserve Bank of Australia (RBA) has a target inflation of 2 to 3 percent….

RBA Rate Decision – Australia

Meeting eleven times a year, the Reserve Bank of Australia stands as the central…

RBNZ Rate Decision – New Zealand

The decision to change or maintain New Zealand ‘s Official Cash Rate. The RBNZ…

reach

The fraction of a specific market category, demographic group or niche that…

reaction

A reversal of the prevailing trend in price movement for a security. The term…

reading the tape

Attempting to predict short-term price changes by examining price and volume information as it comes across the ticker tape.

Reaganomics

Economic program utilized during the Reagan administration, which emphasized…

real

Adjusted for inflation.

real asset

An asset that is intrinsically valuable because of its utility, such as real…

real capital

Capital, such as equipment and machinery, which is used to produce goods. Real…

real economic growth rate

The economic growth rate adjusted for inflation.

real estate

Piece of land and any structures that are (more or less) permanently attached…

real estate agent

A licensed salesperson working for a real estate broker. If the agent sells…

real estate broker

An individual licensed to arrange the buying and selling of real estate for a fee.

Real Estate Investment Trust

Abbreviated as REIT, refers to a corporation or trust that uses the pooled capital…

Real Estate Mortgage Investment Conduit

Abbreviated as REMIC, refers to an investment-grade mortgage bond that separates…

real estate owned

Abbreviated as REO. Property which is in the possession of a lender as a result of foreclosure or forfeiture.

real GDP

Real GDP reflects Gross Domestic Product that has been controlled for the effects…

real income

Income of an individual, organization, or country, after taking into consideration…

real interest rate

The current interest rate minus the current inflation rate.

realize

To make something real from a transaction, such as to get the profit from an investment that has appreciated by selling it.

realized

Having been reflected in a transaction, such as a conversion of goods into cash,…

realized profit

A capital gain or loss that is realized, for example a capital gain or loss…

reallowance

In securities underwriting, the amount paid to a broker/dealer who is not part…

real rate of return

Rate of return after adjusting for inflation.

real-time

Current, as with quotes or news. Opposite of delayed.

real-time trade reporting

A requirement that market makers report each trade in a Nasdaq security to Nasdaq within 90 seconds of execution.

realtor

A real estate agent who is a member of the National Association of Realtors.

realty

A piece of land, including the air above it and the ground below it, and any…

real wages

Income of an individual, organization, or country, after taking into consideration…

rebalancing

Making adjustments to counteract the fact that different assets have performed…

rebate

Partial return of a payment.This may also refer to a deduction from an amount…

rebound

A rally following a decrease in price.

recalculation method

A distribution calculation method for retirement accounts in which each year’s distributions are based on current life expectancy.

recall

The return of a product to its manufacturer for repair or replacement, generally due to defects or safety concerns.

recapitalization

Restructuring of a company’s debt and equity combination.This is essentially…

recapture

A contract stipulation that permits the seller of an asset to at least partially…

recast earnings

A recalculation of earnings based on the assumption that certain expenses could…

receipt

A written acknowledgement which grants legal validation to a repayment of all or part of a debt.

receivables

Receivables refers to money, goods or services owed from one entity to another….

receivables turnover

The average duration of an account receivable, equal to total credit sales divided…

receive against payment

Provision of some institutional sell orders stipulating that only cash will…

receivership

A form of bankruptcy in which a firm can avoid liquidation by reorganizing with the help of a court-appointed trustee.

receive versus payment

Provision of some institutional sell orders stipulating that only cash will…

recession

A period of general economic decline, spread across the whole economy for longer…

recharacterization

An action consisting of reversing the conversion of an IRA from one type to…

reciprocal of European terms

Quoting exchange rates in terms of how many units of the foreign currency equal…

reckoning

Settling an account.

recognize

The recording of a revenue or expense item in given accounting period.

recommendation

An opinion given by an analyst to his/her clients about whether a given stock…

recompense

To repaying

reconciliation

Adjusting one’s checkbook balance to match a bank statement.

reconstitution

An adjustment or series of adjustments resulting in additions to and/or deletions…

reconveyance

The transferring of a title back to its previous owner.

record

To register, file or write down information about a transaction or event.

record date

Date, set by the issuing in order to be eligible to receive a declared dividend…

recoup

To recover all or part of a loss.

recourse loan

A loan for which an undersigner is liable for payment if the borrower defaults.

recovery

A period in a business cycle following a recession, during which the GDP rises.

redeem

See redemption.

redeemable

Able to be redeemed prior to maturity. The term generally applies to bonds and…

redeemable bond

A bond which the issuer has the right to redeem prior to its maturity date,…

redeemable shares

Shares that may be redeemed at the option of the issuer and/or the shareholder.

redemption

The return of an investor’s principal in a security, such as a bond, preferred…

redemption date

The date on which a bond matures or is redeemed, On the redemption date, the…

redemption fee

A sales charge or commission paid when an individual sells an investment, such…

redemption period

The period during which a borrower may reclaim the title and possession of property by paying the debt it secured.

redemption price

The price, specified at issuance, at which a bond or preferred stock can be redeemed by the issuer. Also known as call price.

red flag

A sign of a problem.

red herring

same as preliminary prospectus. Its name comes from the warning, printed in…

red ink

Deficit, loss.

redlining

Illegal practice of discriminating based on geographic location when providing loans or insurance coverage.

reduced paid-up insurance

A form of insurance available as a non-forfeiture option, providing for continuation…

REFCORP

Resolution Funding Corporation. The organization created by Congress in 1989…

refinancing

Paying off an existing loan with the proceeds from a new loan, generally of…

reflation

The intentional reversal of deflation through a monetary action by a government

refund

The return of retail goods by a customer for his/her money back.

refunding

Issuing a bond to retire an existing bond.

refurbish

Renovate, clean up.

region

A part or section of a country or the world.

regional bank

A bank that operates in one region of a country, as opposed to a money center bank, which operates nationally and globally.

regional exchange

An SEC-registered stock exchange which focuses on listing stocks of corporations…

regional fund

Mutual fund which invests in one specific region of a country or the world.

register

To formally record a transaction or event.

registered

Having formally submitted a document to, and received approval for a specific…

registered bond

A bond issued with the name of the owner printed on the face of the certificate….

Registered Company

A corporation that has filed a registration statement with the SEC prior to releasing a new stock issue.

registered coupon bond

A bond whose principal, but not interest, is registered. Because of this, the…

Registered Investment Adviser

Abbreviated as RIA, which refers to an investment advisor registered with the SEC. No certification is required.

registered options principal

An employee of a brokerage firm who observes and regulates options exposure…

Registered Representative

An individual who is licensed to sell securities and has the legal power of…

Registered Retirement Savings Plan

Abbreviated as RRSP, refers to the tax-advantaged retirement planning instrument…

registered security

Security that cannot be transferred or delivered to another party. Opposite of negotiable security.

registrar

The organization, generally a bank or a trust firm, that maintains a registry…

registration

The filing process a firm performs, in accordance with SEC regulations, prior…

Registration Statement

A carefully prepared set of documents, including a prospectus, which is filed with the SEC prior to an initial public offering.

regression

A technique used to discover a mathematical relationship between two variables using a set of individual data points.

regression analysis

A statistical technique used to find relationships between variables for the purpose of predicting future values.

regression equation

A statistical technique used to explain or predict the behavior of a dependent…

regressive tax

A tax that takes a larger percentage of the income of low-income people than of high-income people.

regular-way delivery

Delivery of securities in a transaction on the third business day after the…

regulated investment company

Investment firm eligible under IRS Regulation M to pass capital gains, dividends…

regulation

A rule designed to control the conduct of those to whom it applies. Regulations are official rules, and have to be followed.

Regulation A

An SEC regulation that governs offerings of $1,500,000 or less, which qualify for simplified registration.

Regulation D

An SEC regulation that governs private placement exemption.,,

Regulation FD

SEC regulation adopted in 2000 that eliminated the practice of selective disclosure….

Regulation G

A Federal Reserve Board regulation that governs the extension of credit for…

Regulation Q

A Federal Reserve Board regulation that limits the interest rate that banks can pay on savings deposits. ,,

Regulation T

A Federal Reserve Board regulation that governs customer cash accounts and the…

Regulation U

A Federal Reserve Board regulation that limits the amount of credit a bank can extend to customers for buying on margin.,,

Regulation Z

A federal law requiring lenders to fully disclose in writing the terms and…

regulatory agency

A government organization that monitors firms operating in a regulated industry.,,

regulatory requirements

The restrictions, licenses, and laws applicable to a product or business, imposed by the government.

regulatory risk

The risk associated with the potential for laws related to a given industry,…

rehypothecation

The pledging of securities in customer margin accounts as collateral for a brokerage’s bank loan.,,

reimbursement

Paying back for out-of-pocket expenses, such as by an employer or an insurance firm.

reinstate

Restore a past-due loan to a current status.,,

reinsurance

The sharing of insurance policies among multiple insurers, to reduce the risk for each.

reinvestment

Using the dividends, interest, or profits from an investment to buy more of…

reinvestment date

The first day of the ex-dividend period. The reinvestment date was created…

reinvestment privilege

The privilege some mutual funds give to their shareholders to use income and/or…

reinvestment risk

The risk resulting from the fact that interest or dividends earned from an investment…

REIT

Acronym for Real Estate Investment Trust. A corporation or trust that uses…

rejection

The denial of insurance coverage or credit.,,

relative strength

A stock’s price change over a period of time relative to that of a market index,…

Relative Strength Index

RSI is basically a more advanced version of the basic momentum indicator….

relative volatility

The standard deviation of an investment’s or portfolio’s return divided by the…

release clause

Provision in a mortgage allowing for the freeing of part of a property from…

release letter

Letter sent by the lead underwriter in an offering to the other syndicate members, describing the final terms of the offering.

release of liability

An agreement in which a lender terminates a borrower’s obligation for the payment of a debt.,,

reload option

An employee stock option granted upon the exercise of an option using shares…

relocate

Move. ,,

remainder

The amount left in an estate or trust after expenses and prior beneficiaries have been paid.,,

remaining maturity

The amount of time left until a bond becomes due.,,

remaining principal balance

The amount of principal which, as of a given date, has not yet been paid on a mortgage.

remargining

Payment of additional cash or securities to meet minimum maintenance requirements in a margin account.,,

REMIC

Acronym for Real Estate Mortgage Investment Conduit. An investment-grade mortgage…

remise

To give up, release, or quitclaim interest in real estate.

remit

To make a payment by any non-credit means. Examples of remittance include cash, check and electronic transfer.

remittance

See remit.

remuneration

Compensation.

renegotiable rate

An adjustable rate involving a renewable short-term balloon loan, in which the…

renewable

A natural resource that can replenish itself over time. Opposite of nonrenewable.

rent

Payment, generally monthly, for use of space or property.

rent control

Any form of government restriction, applicable to rental units in certain areas,…

renter's insurance

A type of home insurance that protects the holder against accidents, damages,…

rentier

Individual living off of income from fixed investments.

REO

Acronym for Real Estate Owned. Property which is in the possession of a lender as a result of foreclosure or forfeiture.

reorganization

The action that may allow a firm to emerge from Chapter 11 bankruptcy. Reorganization…

repatriation

Capital flow from a foreign country to the country of origin. This generally…

replacement cost

The amount it would cost to replace an asset at current prices. If the cost…

replacement cost accounting

An accounting method which allows for additional depreciation on some part of…

replacement cost insurance

Insurance which replaces lost, stolen or destroyed property by paying current market prices, rather than depreciated value.

replacement value

The value of an asset as determined by the estimated cost of replacing it.

replevin

A court action to recover possession of collateral.

repo

A contract in which the seller of securities, such as Treasury Bills, agrees…

Reports and Records

Financial information, such as monthly balance sheets, income statements, and…

repossession

The taking back of property by a lender or seller from the borrower or buyer, generally due to default.

representative

One who is authorized to act on behalf of another, such as an executor or a trustee.

repudiate

Deny or reject.

repurchase agreement

A contract in which the seller of securities, such as Treasury Bills, agrees…

Request For Proposal

Abbreviated as RFP, refers to an invitation for providers of a product or service…

Required Minimum Distribution

Abbreviated as RMD, refers to the minimum annual required distribution amount…

required rate of return

The required rate of return in a discounted cash flow analysis, above which…

required reserves

The amounts that banks are required to keep on deposit at a Federal Reserve Bank, as determined by reserve ratios.

requisition

A written request to buy something.

rescheduled loan

A bank loan which was restructured, generally by lengthening the maturity, in order to avoid default.

rescind

To cancel a contractual agreement.

rescission

The cancellation or annulment of a transaction or contract by mutual consent or by law.

research

The process of gathering information for the purpose of initiating, modifying…

research and development

Abbreviated as R&D. Discovering new knowledge about products, processes, and…

research department

Department in a full-service brokerage in which analysts study markets and securities and issue recommendations.

reseller

One who buys goods from a manufacturer and resells them to customers unchanged.

reservation

An advanced order, generally without full payment.

reserve

The amount in assets kept in case of urgent need for liquidity. For central…

Reserve Bank of Australia Bulletin Board

A bulletin board that lists all statistical data published by the Reserve Bank…

reserve ratio

Banks accepts deposits, lending out a portion of those funds to borrowers…

reserve requirement

As the name suggest, this is the amount banks are required to hold in receive….

reset frequency

The frequency with which a adjustable rate changes.

residential mortgage

A type of mortgage of a residential property; up to $1 million is federal and…

residential property

Property which is zoned for single-family homes, multi-family apartments, townhouses, condominiums, and/or co-ops.

residential rental property

Real property for which 80% or more of the gross income is from dwelling units.

residual

Having the characteristic of remaining

residual security

Security that could potentially dilute earnings per common share, such as preferred…

residual value

The amount a firm expects to be able to sell a fixed asset for at the end of its useful life.

resistance

The price level in which a currency pair has difficulty trading above. At resistance,…

resolution

An official document representing an action on the part of the board of directors of a corporation.

Resolution Funding Corporation

Abbreviated as REFCORP, refers to the organization created by Congress in 1989…

resource

An individual, asset, material, or capital which can be used to accomplish a goal.

resource allocation

The process of allocating resources among the various projects or business units.

restitution

Compensation for loss or injury.

restraint of trade

Illegally interfering with free marketplace participation. Regulated by the Federal Trade Commission.

restricted account

A margin account which has less equity than is required by Regulation T. Purchases…

restricted fee patent

Restricted fee patent refers to the legal relationship between two parties,…

restricted security

Any kind of securities that have limited transferability, generally issued in a private placement.

restricted stock

A type of stock which is acquired though an employee stock option plan or other…

restricted surplus

A portion of a firm’s retained earnings not legally available for dividend payment.

restrictive covenant

A portion of a firm’s retained earnings not legally available for dividend payment.

restructure

To reorganize a firm’s operations.

restructuring

See restructure.

resume

A brief written summary of an individual’s education, work experience, and accomplishments,…

resyndication limited partnership

Limited partnership in which existing properties are sold to new partners, for tax benefits of existing partners.

retail

The selling directly to consumers.

retail banking

Retail banking refers to the offering of basic banking products to the general…

retail brokerage

A brokerage most of whose customers are retail investors rather than institutional investors.

retail investor

An individual who purchases small amounts of securities for him/herself, as…

retail lending

Lending to private individuals, as opposed to institutions.

retail price

Price charged to store customers.

Retail Price Index

A measure of inflation used primarily in the UK for wage bargaining and other…

Retail Prices Index (RPI) – UK

Retail Price Index measures changes in the prices of goods and services bought…

Retail Sales – Canada

Gauges sales at Canadian retail outlets. The report serves as a direct gauge…

Retail Sales – German – Euro-zone

Measures changes in sales of the German retail sector. Given that consumption…

retail sales index

A monthly measurement of all goods sold by retailers based on a sampling of…

Retail Sales – UK

Measures the change in the volume of sales by retailers in the United Kingdom…

Retail Trade – Australia

Measure of the total sales of goods and services by retail stores in Australia….

Retail Trade – Euro-zone

The total value of goods and services sold each month at retail outlets. The…

Retail Trade Monthly – Japan

The total value of goods and services sold each month at retail outlets. The…

Retail Trade – New Zealand

Tracks changes in New Zealand retail sales. As consumption contributes heavily…

retained earnings

Earnings not paid out as dividends but instead reinvested in the core business…

retainer

A partial fee paid in advance for professional services.

retender

The right of a holder of certain futures contracts, who has received a notice…

retention rate

Retained earnings divided by total after-tax earnings, expressed as a percentage.

retire

To pay off a debt.

retirement

The period of an individual’s life during which he/she is no longer working, or the commencement of that period.

Retirement Equity Act of 1984

An amendment to the Employee Retirement Income Security Act of 1974 providing…

retracement

A reversal movement, in price action, that counters a previous advance or decline…

retreat

Drop in price level following a rise. Opposite of rally.

retroactive

Effective as of an earlier date than the date enacted.

return

The annual return on an investment, expressed as a percentage of the total amount invested. Also known as rate of return.

return of capital

A distribution of cash resulting from depreciation tax savings, the sale of…

Return on Assets

Abbreviated as ROA, refers to a measure of a firm’s profitability, equal to…

Return on Capital

Abbreviated as ROC, refers to a measure of how effectively a firm uses the money…

Return on Capital Employed

Abbreviated as ROCE. A measure of the returns that a firm is realizing from…

Return on Equity

Abbreviated as ROE, refers to a measure of how well a firm used reinvested earnings…

Return on Invested Capital

ROIC is a calculation used to assess the profitability of a firm by determining…

Return on Sales

Abbreviated as ROS, refers to a measure of a firm’s profitability, equal to…

Return on Total Assets

Abbreviated as ROTA, refers to a measure of how effectively a firm uses its…

Reunion Franc

The currency of Reunion.See GoCurrency World Currencies Page & Currency Converter

revaluation

A change, generally an increase, in a country’s fixed exchange rate.

revenue

A measure of the total amount of money a firm receives within a given amount…

revenue anticipation note

Security issued in anticipation of future revenue which will be used for repayment.

revenue bond

Bond issued by a municipality to finance a specific public works project and…

Revenue Reconciliation Act of 1993

Law designed to reduce the federal budget deficit by raising taxes and reducing…

revenue ruling

An IRS tax decision resulting from an interpretation of an unclear regulation.

revenue sharing

The splitting of operating profits and losses between the general partner and…

reversal

Change in the general direction of a market, such as a rally. Also known as trend reversal.

reversal arbitrage

A riskless transaction consisting of the short sale of a security, the purchase…

reverse acquisition

One way for a firm to become publicly traded, by acquiring a public firm and…

reverse-annuity mortgage

An arrangement in which a homeowner borrows against the equity in his/her home…

reverse conversion

The method by which a brokerage earns interest on its customers’ stock holdings…

reverse leverage

Negative cash flow.

reverse merger

The acquisition of a public firm by a private firm, allowing the private firm…

reverse mortgage

An arrangement in which a homeowner borrows against the equity in his/her home…

reverse repo

A purchase of securities with an agreement to resell them at a higher price…

reverse repurchase agreement

A purchase of securities with an agreement to resell them at a higher price…

reverse split

A stock split which reduces the number of outstanding shares and increases the…

Reverse Take-Over

Abbreviated as RTO, refers to when a firm buys out a larger firm, but could…

revert

To return to a previous condition.

revisionary trust

Irrevocable trust that becomes a revocable trust after a specified period of…

revocation

The act of recalling or terminating a previously granted power of attorney….

revoke

To cancel or annul.

revolving collateral

revolving collateral

revolving line of credit

An agreement by a bank to lend a specific amount to a borrower, and to allow…

RFP

Acronym for Request For Proposal. An invitation for providers of a product or…

rho

The dollar change in a given option’s price that results from a 1% change in interest rates.

RIA

Acronym for Registered Investment Adviser. Investment advisor registered with the SEC. No certification is required.

rich

Well to do, earning a high level of income or retaining a high level of wealth compared to others.

Richmond Fed Manufacturing Survey – United States

Assesses regional manufacturing conditions for the Richmond Fed District. Based…

RICS House Price Balance – UK

Gauge for costs of homes in the United Kingdom. The figure is based on surveyors’…

rider

An amendment to a contract or policy.

right

A privilege allowing existing shareholders to purchase shares of an issue of…

right of first refusal

The right of a party to match the terms of a proposed contract with another party.

right of recourse

The right to recover a bad debt.

right of redemption

The right of a property owner to redeem his/her real estate from foreclosure…

right of rescission

The right of a consumer to nullify a contract within three business days of signing it without paying a penalty or down payment.

right of survivorship

Ownership of property by two or more people in which the survivors automatically…

rights issue

See right.

rights offering

Offering of common stock to investors who currently hold shares which entitle…

Right to Know

Laws that make government or corporate data and records available to the public…

ring

A demarcated area on the exchange floor where traders and brokers execute trades.

rising bottoms

A technical analysis term for a chart pattern in which each successive low price is higher than the previous one.

risk

The possibility of loss in absolute terms, or relative to expectations. Examples…

risk adjusted return

A measure of how much an investment returned in relation to the amount of risk it took on.

risk arbitrage

The use of an arbitrage, usually associated with risk.

risk-averse

The act of investing conservatively.

risk capital

The funds made available for startup firms and small businesses with exceptional…

risk disclosure document

A document outlining the risks involved in futures trading (i.e. one may lose…

risk-free asset

An asset whose future return is known with certainty, barring complete changes in the market.

risk-free return

A theoretical interest rate that would be returned on an investment, if it were…

riskless arbitrage

A risk-free transaction consisting of purchasing an asset at one price and simultaneously…

riskless asset

An asset whose future return is known with certainty, barring complete changes in the market. Also known as risk-free asset.

riskless rate of return

A theoretical interest rate that would be returned on an investment which was…

riskless transaction

A transaction that guarantees a profit to whoever initiates it (i.e. riskless arbitrage).

risk management

The process of analyzing exposure to risk and determining how to best handle such exposure.

risk neutral

Someone who is indifferent to risk, meaning someone who is completely indifferent…

risk premium

The reward for holding a risky investment rather than a risk-free one.

risk rate

The rate of return required to attract capital to an investment.

risk/return trade-off

The relationship between risk and return, in which one must be willing to accept…

risk seeking

Someone who is attracted to risk, meaning an investment with a lower expected…

risk tolerance

An investor’s ability to handle declines in the value of his/her portfolio.

risk transfer

The shifting risk from one party to another; examples include purchasing insurance coverage or issuing debt.

RMD

Acronym for Required Minimum Distribution, which refers to the required distribution…

ROA

Return on Assets. A measure of a firm’s profitability, equal to a fiscal year’s…

road show

A series of meetings with potential investors and brokers, conducted by a firm…

ROC

Acronym for Return on Capital, which refers to a measure of how effectively…

ROCE

Acronym for Return on Capital Employed, which refers to a measure of the returns that a firm is realizing from its capital.

ROE

Acronym for Return on Equity, which refers to a measure of how well a firm used…

ROI

Acronym for Return on Investment, which refers to a measure of a corporation’s…

ROIC

ROIC is a calculation used to assess the profitability of a firm by determining…

ROL

The ISO currency code for the Romanian Leu.

roll down

The act of closing out one option position and open another one of the same class but a lower strike price.

roll forward

The act of closing out one option position and open another one of the same class but a later expiration date.

rollout

The process of introducing a new product or service into the marketplace. Also known as launch.

rollover

Rollover refers to the interest traders may earn or be charged daily, for positions…

roll over

Rollover refers to the interest traders may earn or be charged daily, for positions…

rollover mortgage

A Mortgage for which the unpaid balance is refinanced every few years at then-current…

roll up

The act of closing out one option position and open another one of the same class but a higher strike price.

Romanian Leu

The official currency of Romania. Learn more about Romania and the Romanian Leu at GoCurrency.com

RON

The ISO code for the Romanian Leu. Learn more about Romania and the Romanian Leu at GoCurrency.com

Ron Insana

Anchor of CNBC’s “Street Signs,” Ron Insana is an accredited financial journalist….

ROS

Acronym for Return on Sales, which refers to a measure of a firm’s profitability,…

ROTA

Acronym for Return on Total Assets, which refers to a measure of how effectively…

rotation

The movement of money by one investor or the overall market from one or more…

Roth IRA

Roth IRA refers a type of individual retirement plan that offers a number of…

round lot

The normal unit of trading of a security; 100 shares of stock or 5 bonds. Also…

round of funding

The stage of financing a start-up firm is in. The usual progression is from startup to first round to mezzanine to pre-IPO.

round turn

A complete futures transaction, including both entry and exit. Also known as round trip.

royalty

A payment made for the use of property, especially a patent, copyrighted work,…

RPI

Acronym for Retail Price Index, which refers to an inflationary indicator that…

RRSP

Acronym for Registered Retirement Savings Plan, which refers to. A tax-advantaged…

RSI

Acronym for Relative Strength Index, which refers to a technical analysis indicator…

r-squared

Statistical measure of correlation between a portfolio’s performance…

RTO

Acronym for Reverse Take-Over. When a firm buys out a larger firm, but could…

RUB

The ISO code for the Russian Ruble. Learn more about Russia and the Russian Ruble at GoCurrency.com

rubber check

A check which a bank returns because it is not payable due to insufficient funds. Also known as bounced check.

Rule 10b-6

A regulation formally known as the Employment of Manipulative and Deceptive Practices…

Rule 12b-1 fee

An extra fee charged by some mutual funds to cover promotion, distributions,…

Rule 13d

An SEC rule requiring disclosure by anyone acquiring a beneficial ownership…

Rule 15c3-1

Securities and Exchange Commission rule that sets the conditions under which restricted

Rule 19c3

An SEC rule that permits member firms to make off board trades in securities…

Rule 144

Securities and Exchange Commission rule that sets the conditions under which restricted

Rule 415

An SEC rule allowing for shelf registrations of securities which will be issued…

Rule of 72

The estimation of doubling time on an investment, for which the compounded annual…

Rule of 78

A formula used to determine rebates on interest for installment loans; since…

Rules of Fair Practice

Any set of rules established by NASD to protect the best interests of the securities investor.

rumortrage

A trading based on a rumor of a takeover.

run

A situation in which many customers try to withdrawal their bank deposits simultaneously…

running ahead

A broker’s trading for his own account before filling his/her customers’ orders,…

run rate

The result of extrapolating financial data, collected from a period of time less than one year to a full year.

run up

A sudden, unexpected increase in price.

Russell 2000

The most commonly used of a series of market-value weighted indices published…

Russian Ruble

The official currency of Russia. Learn more about Russia and the Russian Ruble at GoCurrency.com

rust belt

The area in the Midwest part of the U.S. where manufacturing is largely unmodernized.

Rwanda Franc

The area in the Midwest part of the U.S. where manufacturing is largely unmodernized.

RWF

The ISO code for the Rwandan Franc. Learn more about Rwanda and the Rwandan Franc at GoCurrency.com