Retire Paying off or fulfilling obligation on a security to end its validity. Random Finance Terms for the Letter S Residual Value Resistance Level Response Lag Restrictive Covenants Retail Retail Credit Retail Investors Individual Investors Retained … [Read more...]
Retracement
Retracement Movement of price in direction opposite to the last seen trend. Random Finance Terms for the Letter S Retracement Return Return on Assets (ROA) Return on Capital Employed Return on Capital Employed Return on Equity (ROE) Return on Investment (ROI) Return … [Read more...]
Return
Return Over a specific time frame, the change in portfolio value. This includes distributions made during the same period from the portfolio. Random Finance Terms for the Letter S Retracement Return Return on Assets (ROA) Return on Capital Employed Return on Capital … [Read more...]
Return on Capital Employed
Return on Capital Employed Ratio representing the efficiency of capital deployment in a company. Ideally should be higher than rate at which funds are borrowed by the company. Formula - Earnings before Interest and Tax (EBIT) divided by {total assets minus current liabilities}. … [Read more...]
Return on Equity (ROE)
Return on Equity (ROE) Measure of profitability denoted as percentage. Formula - net income for past one year period divided by total common stocks held by public (splits to be factored in). ROE shows how funds of a business are being deployed. Decomposed into financial leverage … [Read more...]
Return on Investment (ROI)
Return on Investment (ROI) The percentage of net book value that forms the book income. Random Finance Terms for the Letter S Retracement Return Return on Assets (ROA) Return on Capital Employed Return on Capital Employed Return on Equity (ROE) Return on Investment … [Read more...]
Return on Total Assets
Return on Total Assets Ratio that compares earnings of common shareholders to total assets of business. Random Finance Terms for the Letter S Retracement Return Return on Assets (ROA) Return on Capital Employed Return on Capital Employed Return on Equity (ROE) Return … [Read more...]
Return-to-Maturity Expectations
Return-to-Maturity Expectations Theory that when investor rolls over short term debt like bonds to a certain maturity, say X years, his return will be the same as if he had held zero coupon bond of X years maturity. Also refer to pure expectations theory. … [Read more...]
Revaluation
Revaluation An upward change in exchange value of a currency with respect to others when it is linked to gold or other currencies. Random Finance Terms for the Letter S Retracement Return Return on Assets (ROA) Return on Capital Employed Return on Capital … [Read more...]
Revenue Bond
Revenue Bond Bonds issued to finance major projects, For example, hospital revenue bonds, where issuer agrees to secure the bond repayment through the funds generated from the project when it becomes operational. Often issued by municipalities. Random Finance Terms for the … [Read more...]
Revenue Fund
Revenue Fund Fund that accounts for all revenues derived from project or enterprise whose finances come from a municipal bond issue. Random Finance Terms for the Letter S Revenue Fund Reverse Price Risk Reverse Repo Reverse Stock Split Reverse Swap Reversing … [Read more...]
Reverse Price Risk
Reverse Price Risk Risk undertaken by mortgage lender when he offers loans to investors at prevailing rates but finalizes the actual payable rates at the time of sale closure. If the rate has declined in the ensuing period, the lender is at risk. Random Finance Terms for the … [Read more...]
Reverse Repo
Reverse Repo Purchase of assets with agreement to sell back to the original owner at specific date and price. Often used as a means of getting short term capital with asset as collateral. Random Finance Terms for the Letter S Revenue Fund Reverse Price Risk Reverse … [Read more...]
Reverse Stock Split
Reverse Stock Split Consolidation of stocks so that total value held by each stockholder remains same while number of stocks reduces. Percentage of equity held remains constant after reverse stock split. Usually undertaken to enhance the stock price in the market to attract new … [Read more...]
Reverse Swap
Reverse Swap Swap that overrides a previously completed one. Conducted Over The Counter as a method of managing risk effectively. Most commonly used to avoid negative tax or accounting complications that arise in canceling swaps. Random Finance Terms for the Letter … [Read more...]
Reversing Trade
Reversing Trade Closing a future position by choosing to take an opposite position to the current one held. Random Finance Terms for the Letter S Revenue Fund Reverse Price Risk Reverse Repo Reverse Stock Split Reverse Swap Reversing Trade Revolving Credit … [Read more...]
Revolving Credit Agreement
Revolving Credit Agreement Agreement that is legally binding between bank and customer wherein bank keeps an open line of credit for him up to a specific level for a pre determined time period. Random Finance Terms for the Letter S Revenue Fund Reverse Price … [Read more...]
Revolving Line of Credit
Revolving Line of Credit Line of credit offered by banks for specific number of years on which they charge commitment fee from customers. The customer can borrow funds from this line and repay as per his capabilities within the terms of the credit. Random Finance Terms for … [Read more...]
Reward-to-Volatility Ratio
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
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...]
Letter of Comment