Reward-to-Volatility Ratio Ratio to assess investment risk. Calculated as excess return gained on investments divided by standard deviation. Random Finance Terms for the Letter S Revenue Fund Reverse Price Risk Reverse Repo Reverse Stock Split Reverse Swap Reversing … [Read more...]
Riding the Yield Curve
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Riding the Yield Curve Purchasing long term debt securities with expectation of capital gains when yields decline as maturity approaches. Random Finance Terms for the Letter S Revenue Fund Reverse Price Risk Reverse Repo Reverse Stock Split Reverse Swap Reversing … [Read more...]
Right
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Right Call option, usually with less than 3 months validity, to buy additional shares. This option is issued by the company to shareholders in proportion to their existing shareholding. Random Finance Terms for the Letter S Right Rights … [Read more...]
Rights Offering
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Rights Offering Offer of rights to existing shareholders allowing them to expand shareholding through discounted price acquisitions. Such shareholders may sell these ‘rights’ in an open market trade to others interested in buying the company’s shares. Most often such rights offering … [Read more...]
Rights-On
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Rights-On Transaction involving shares with undisbursed rights. Random Finance Terms for the Letter S Right Rights Offering Rights-On Rings Ripple Risk Risk-Adjusted Profitability Risk Arbitrage Risk Averse Risk Classes … [Read more...]
Rings
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Rings Also called pit. Trading area in an exchange where traders conduct transactions and execute client instructions. Random Finance Terms for the Letter S Right Rights Offering Rights-On Rings Ripple Risk Risk-Adjusted Profitability Risk Arbitrage Risk … [Read more...]
Ripple
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Ripple Short term trend witnessed in markets. Traders are advised to ignore these, as analysts believe these will pass quickly and not have any significant impact on market prices. Random Finance Terms for the Letter S Right Rights … [Read more...]
Risk
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Risk The possibility of variability in returns on an investment. Higher possibility of variability means higher risk, which must be compensated by higher yields. Random Finance Terms for the Letter S Right Rights Offering Rights-On Rings Ripple Risk Risk-Adjusted … [Read more...]
Risk-Adjusted Profitability
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Risk-Adjusted Profitability Determination of a value that will be accepted in lieu of a more uncertain outcome and that will actually equal the final high risk uncertain return. Random Finance Terms for the Letter S Right Rights … [Read more...]
Risk Arbitrage
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Risk Arbitrage Simultaneous sale of stock of acquiring company and purchase of stock in company being acquired. Also denotes gaining from the spreads that may be present between market value of the to-be-acquired company and the actual purchase price that the acquirer pays. … [Read more...]
Risk Averse
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Risk Averse Investor who opts for low risk investments when asked to choose between two with similar yields and maturities. Random Finance Terms for the Letter S Right Rights Offering Rights-On Rings Ripple Risk Risk-Adjusted Profitability Risk Arbitrage Risk … [Read more...]
Risk Classes
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Risk Classes Security categories classified on basis of inherent risk. Random Finance Terms for the Letter S Right Rights Offering Rights-On Rings Ripple Risk Risk-Adjusted Profitability Risk Arbitrage Risk Averse Risk Classes … [Read more...]
Risk Controlled Arbitrage
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Risk Controlled Arbitrage Transactions that are based on Mortgage Based Securities (MBS), which are the primary assets. These transactions derive funding and hedge risks with the earnings from the MBS. Random Finance Terms for the Letter S Risk Controlled Arbitrage Risk … [Read more...]
Risk Indexes
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Risk Indexes Risk categories used in analysis of and to identify fundamental risks in investments. Includes probability of fluctuation in earnings and market, undermined valuation, magnitude and immaturity, financial risk and direction of growth. Random Finance Terms for the … [Read more...]
Risk Lover
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Risk Lover Investors who invest in high risk securities although expected returns are lower or the investment is unproven in the markets. Random Finance Terms for the Letter S Risk Controlled Arbitrage Risk Indexes Risk Lover Risk Management Risk Neutral Risk … [Read more...]
Risk Management
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Risk Management Identifying, evaluating and mitigating risks in investments. Various strategies and techniques may be employed to address different kinds of risks. Random Finance Terms for the Letter S Risk Controlled Arbitrage Risk Indexes Risk Lover Risk … [Read more...]
Risk Neutral
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Risk Neutral Investors/ investments unaffected by risk. Random Finance Terms for the Letter S Risk Controlled Arbitrage Risk Indexes Risk Lover Risk Management Risk Neutral Risk Participation Risk Prone Risk Premium Risk Premium Approach Riskless Rate … [Read more...]
Risk Participation
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Risk Participation Transaction where a bank sells exposure to a risky obligation to another institution to reduce its risk levels. The final risk holder or participant has no direct dealing with the borrower. Random Finance Terms for the Letter S Risk Controlled … [Read more...]
Risk Prone
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Risk Prone Higher risk tolerance and willingness to invest in high risk investments. Random Finance Terms for the Letter S Risk Controlled Arbitrage Risk Indexes Risk Lover Risk Management Risk Neutral Risk Participation Risk Prone Risk Premium Risk Premium … [Read more...]
Risk Premium
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Risk Premium The spread between US Treasury securities and others of similar maturity periods. Can be seen as the financial advantage gained by holding a higher risk investment instead of safe ones. Random Finance Terms for the Letter S Risk Controlled Arbitrage Risk … [Read more...]
