Investor Education

Investor Glossary

Terms beginning with 'R'

Rally
A brisk general rise in securities prices usually following a decline.

Rate of Return
A rate that takes into account both dividends and capital appreciation.

Rating on a Bond
An evaluation of quality and/or risk assigned by a rating agency such as Standard & Poor’s or Moody’s.

Real Return
A return adjusted for changes in inflation.

Recession
An economic downturn.

Record Date
The shareholder registration date that determines the recipients for that period’s dividends.

Redemption Fee
A commission charged when one withdraws money from a mutual fund.

Redemption Price
The price at which a bond or preferred stock may be called prior to its maturity.

Registered Bond
A bond whose ownership is determined by registration as opposed to possession such as a bearer bond.

Relative Strength Index (RSI)
The RSI compares the magnitude of a stock’s recent gains to the magnitude of recent losses. For a more explanation of RSI, please see (provide link to Capital Focus for June 2004).

Repurchase Agreement (Repo)
A type of investment in which a security is sold with a prearranged purchase price and date designed to produce a particular yield.

Retained Earnings
That portion of profits not paid out in corporate taxes or dividends.

Return on Equity
Profits after taxes, interest, and preferred dividends as a percent of common equity.

Return on Investment
Profits before interest and taxes as a percent of total assets.

Reverse Split
A securities exchange in which each shareholder receives a reduced number of shares but retains the same proportional ownership. For example, a 10 for one reverse split would exchange 10 new shares for each 100 old shares.

Risk
The degree of uncertainty associated with an expected investment return.

Rollover
A change from one investment to another.


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