Glossary

Range	The price span of a stock, index, or exchange during a given trading session, week, month, year, or other time period.
Recession	A temporary downturn in economic activity, usually indicated by two consecutive quarters of a falling GDP.
Record Date	Date by which a shareholder must officially own shares in order to be entitled to a dividend.
Redemption	The paying off or buying back of a bond by the issuer.
Refunding Bond	The replacement of a bond issue with a new bond issue.
Registered Bond	A bond that is recorded in the name of the holder of the books of the issuer or the issuer's registrar and can be transferred to another owner only when endorsed by the registered owner.
Registered Security	Used in the context of general equities. Securities whose owner's name is recorded on the books of the issuer or the issuer's agent, called a registrar.
Registered Shares	Shares that are issued in a shareholder's name as the holder of record.
Registrar	An organization with the responsibility of keeping a record of the owners of securities.
Regulations	Rules specifying the appropriate behavior of agencies, organizations or individuals in the securities industry.
Reinvestment	Use of investment income to buy additional securities. Many mutual fund companies and investment services offer the automatic reinvestment of dividends and capital gains distributions as an option investors.
Rejected Order	An order that is invalid or unacceptable.
Repurchase Agreements (Repo)	An agreement between a seller and a buyer, in which the seller agrees to buy back the security at a later date.
Required Rate of Return (RRR)	The minimum expected yield by investors require in order to select a particular investment.
Reserve Requirements	The minimum amount of cash and liquid assets as a percentage of demand deposits and time deposits that member banks of the Central Bank are required to maintain.
Retail Investor	An individual who buys and sells securities on his own behalf, not for an organization.
Return on Assets (ROA)	A percentage calculated by dividing a company's net income from the previous year by its common stockholder equity. Indicator of profitability.
Return on Capital Employed (ROCE)	Indicator of profitability of the firm's capital investments. Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets). The idea is that this ratio should at least be greater than the cost of borrowing.
Return on Equity (ROE)	Indicator of profitability. Determined by dividing net income for the past 12 months by common stockholder equity (adjusted for stock splits). Result is shown as a percentage. Investors use ROE as a measure of how a company is using its money.
Return on Investment (ROI)	Generally, book income as a proportion of net book value.
Reuters	International news and quotation service based in London.
Rights Offering	Issuance to shareholders that allows them to purchase additional shares, usually at a discount to market price. Holdings of shareholders who do not exercise rights are usually diluted by the offering. Rights are often transferable, allowing the holder to sell them on the open market to others who may wish to exercise them .
Risk	Often defined as the standard deviation of the return on total investment. Degree of uncertainty of return on an asset. In context of asset pricing theory.
Risk Indexes	Categories of risk used to calculate fundamental beta, including (1) market variability, (2) earnings variability, (3) low valuation, (4) immaturity and smallness, (5) growth orientation, and (6) financial risk.
Riskless Transaction	A transaction that is guaranteed a profit, such as the arbitrage of a temporary differential between commodity prices in two different markets.
Risk Management	The process of identifying and evaluating risks and selecting and managing techniques to adapt to risk exposures.