Joom!Fish config error: Default language is inactive!
 
Please check configuration, try to use first active language


Warning: Cannot modify header information - headers already sent by (output started at /home/aiptrdng/public_html/eng/plugins/system/jfrouter.php:302) in /home/aiptrdng/public_html/eng/plugins/system/jfrouter.php on line 317

Warning: Cannot modify header information - headers already sent by (output started at /home/aiptrdng/public_html/eng/plugins/system/jfrouter.php:302) in /home/aiptrdng/public_html/eng/plugins/system/jfrouter.php on line 318

Warning: Cannot modify header information - headers already sent by (output started at /home/aiptrdng/public_html/eng/plugins/system/jfrouter.php:302) in /home/aiptrdng/public_html/eng/plugins/system/jfrouter.php on line 319
R

Investment and Trading Glossary

A B C D E F G H I J K L M N O P  Q  R S T U V W X Y Z

 

R

RANGE

A security´s low price and high price for a particular trading period, such as the close of a day´s trading, the opening of a day´s trading, or a day.

RATING

An evaluation of a corporate or municipal bond´s relative safety, according to the issuer´s ability to

repay principal and make interest payments.

Bonds are rated by various organizations such as Standard & Poor´s and Moody´s. Ratings range from AAA or Aaa (the highest) to C or D, which represents a company in default.

RATING SERVICE

A company, such as Moody´s or Standard & Poor´s that rates various debt and preferred stock issues for safety of payment of principal, interest or dividends. The issuing company or municipality pays a fee to the rating.

See also rating.

R COEFFICIENT

A statistical measure of how closely the movements of a security´s price track the movements of the market.

Syn. correlation coefficient.

REALIZED GAIN

The amount earned by a taxpayer when an asset is sold.

See also unrealized gain.

RECAPITALIZATION

Changing the capital structure of a corporation by issuing, converting or redeeming securities.

RECESSION

General economic decline lasting from six to eighteen months.

RECLAMATION

The right of the seller of a security to recover any loss incurred in a securities transaction owing to bad delivery or other irregularity in the settlement process.

RECORD DATA

The date established by a corporation´s board of directors that determines which of its stockholders are entitled to receive dividends or rights distributions.

REDEMPTION

The return of an investor´s principal in a security, such as a bond preferred stock or mutual fund shares.

By law, redemption of mutual fund shares must occur within seven days of receiving a request for redemption from the investor.

RED HERRING

See preliminary prospectus.

REFINANCING

Issuing equity, the proceeds of which are used to retire debt

REGISTERED

The term that describes a security that prints the name of the owner on the certificate. The owner´s name is stored in record kept by the issuer or a transfer agent.

REGISTERED AS TO PRINCIPAL ONLY

The term used to describe a bond that prints the name of the owner on the certificate but has unregistered coupons payable to the bearer.

REGISTERED PRINCIPAL

An associated person of a member firm who manages supervises the firm´s investment banking or securities business. This includes persons who train associated persons and who solicit business.

Unless the member firm is a sole proprietorship, it must employ at least two registered principals, one of whom must be registered as a general securities principal and one of whom must be registered as a financial and operations principal. If the firm does options business with the public, it must employ at least one registered options principal.

REGISTERED REPRESENTATIVE (RR)

An associated person engaged in the investment banking or securities business. According to the NASD, this includes individuals who supervise, solicit or conduct business in securities and who train people to supervise, solicit or conduct business in securities.

Anyone employed by a brokerage firm who is not a principal and who is not engaged in clerical or brokerage administration is subject to registration and exam licensing as a registered representative.

REGISTERED TRADER

A member of an exchange who trades primarily for a personal account and at personal risk.

REGISTRATION STATEMENT

The legal document that discloses all pertinent information concerning an offering of a security and its issuer. It is submitted to the SEC in accordance with the requirements of the Securities Act of 1933, and forms the basis of the final prospectus that is distributed to investors.

REG T

See Regulation T.

REG T CALL

See margin call.

REGULATION T

The Federal Reserve Board regulation that governs customer cash accounts and the amount of credit that brokerage firms and dealers may extend to customers for the purchase of securities. Regulation T currently sets the loan value of marginable securities at 50% and the payment deadline at two days beyond regular way settlement.

Syn.Reg T.

RESISTANCE LEVEL

A technical analysis term describing the top of a stock´s historical trading range.

See also breakout, support level.

RESTRICTED ACCOUNT

A margin account in which the equity is less than the Regulation T initial requirement.

See also equity, initial margin requirement; margin account; retention requirement.

RETAIL TRANSACTION

A trade in which an individual investor buys a security from or through a broker-dealer, or sells a security to or through a broker-dealer.

See also whole sale transaction.

RETURN ON EQUITY

A measure of a corporation´s profitability, specifically its return on assets, calculated by dividing after tax income by tangible assets.

RETURN ON INVESTMENT (ROI)

The profit or loss resulting from a security transaction, often expressed as a annual percentage rate.

REVERSE SPLIT

A reduction in the number of a corporation´s shares outstanding that increases the par value of its stock or its earnings per share. The market value of the total number of shares remains the same.

See also stock split.

RIGHT

A security representing a stockholder´s entitlement to the first opportunity to purchase new shares issued by the corporation at a predetermined price (normally less than the current market price) in proportion to the number of shares already owned. Rights are issued only for a short period of time, after which they expire.

Syn. subscription right; subscription right certificate.

See also preemptive right; right offering.

RIGHT OF ACCUMULATION

A benefit offered by a mutual fund that allows the investor to qualify for reduced sales loads on additional purchases according to the total dollar value of the fund account.

RIGHT OF WITHDRAWAL

A provision of the Investment Company Act of 1940 that allows an investor in a mutual fund contractual plan to terminate the plan within 45 days from the mailing date of the written notice detailing the sales charges that will apply over the plan´s life. The investor is then entitled to a refund of all sales charges.

RIGHT AGENT

An agent of an issuing corporation who is responsible for maintaining current records of the names of the owners of rights certificates.

RIGHTS OFFERING

An issue of new shares of stock accompanied by the opportunity for each stockholder to maintain a proportionate ownership by purchasing additional shares in the corporation before the shares are offered to the public.

See also right.

ROI

See return on investment.

ROUND LOT

The normal unit of trading of a security, which is generally 100 shares of stock or five bonds.

See also odd lot.

RR

See registered representative.

RULE 405

NYSE rule requiring that each member organization exercises due diligence to learn the essential facts about every customer.

Syn.  know your customer rule.