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Financial Terms beginning with R

R Squared
R
RBC Consumer Attitudes And Spending By Household Index (RBC CASH Index)
RSI Relative Strength Index
RSI
Rabbi Trust
Racketeering
A racket is a planned or organized criminal act, usually in which the criminal act is a form of business or a way to earn illegal or extorted money regularly or briefly but repeatedly. A racket is often a repeated or continuous criminal operation.
Radner Equilibrium
Rafael Miranda Robredo
Ragnar Frisch
Raider
Rain Check
Rainbow Option
Rainbow option is a derivative exposed to two or more sources of uncertainty, as opposed to a simple option that is exposed to one source of uncertainty, such as the price of underlying asset.
Rainmaker
Raintaker
Rally
Ralph Wanger
Ramani Ayer
Ramani Ayer is an Indian-American business executive, and the CEO and chairman of The Hartford from 1997 to 2009.
Ramp Up
Ramp up is a term used in economics and business to describe an increase in a firm's production ahead of anticipated increases in product demand. Alternatively, ramp up describes the period from completed initial product development to maximum capacity utilization, characterized by product and process experimentation and improvements.
Random Factor Analysis
Random Variable
Random Walk Theory
A random walk is a mathematical object, known as a stochastic or random process, that describes a path that consists of a succession of random steps on some mathematical space such as the integers. An elementary example of a random walk is the random walk on the integer number line, \mathbb Z, which starts at 0 and at each step moves +1 or −1 with equal probability. Other examples include the path traced by a molecule as it travels in a liquid or a gas, the search path of a foraging animal, the price of a fluctuating stock and the financial status of a gambler can all be approximated by random walk models, even though they may not be truly random in reality. As illustrated by those examples, random walks have applications to many scientific fields including ecology, psychology, computer science, physics, chemistry, biology as well as economics.
Range Accrual
In finance, a range accrual is a type of derivative product very popular among structured-note investors. It is estimated that more than US$160 billion of Range Accrual indexed on interest rates only have been sold to investors between 2004 and 2007. It is one of the most popular non-vanilla financial derivatives. In essence the investor in a range accrual is betting that the reference "index" - usually interest rates or currency exchange rates - will stay within a predefined range.
Range Bound Trading
Range Forward Contract
Range
Ras Al Khaimah Investment Authority (RAKIA)
Ratable Accrual Method
Rate And Term Refinance
Rate Anticipation Swap
Rate Improvement Mortgage
Rate Level Risk
Rate Of Adoption
Rate Of Change
Rate Of Return Regulation
Rate-of-return regulation is a system for setting the prices charged by government-regulated monopolies. The main premise is that monopolies will be compelled to charge the same price that would ideally prevail in a perfectly competitive market, which is equal to the efficient costs of production plus a market-determined rate of return on capital.
Rate Of Return
Rate Trigger
Rating
Ratings Service
Ratio Analysis
Ratio Call Write
Ratio Spread
A Ratio spread is a complex, multileg options position that is a variation of a vertical spread. Like a vertical, the ratio spread involves buying and selling options on the same underlying security with different strike prices and the same expiration date. Unlike a vertical spread, a number of option contracts sold is not equal to a number of contracts bought. An unequal number of options contracts gives this spread certain unique properties compared to a regular vertical spread. A typical ratio spread would be where twice as much option contracts are sold, thus forming a 1:2 ratio.
Rational Behavior
Rational Choice Theory
Rational choice theory, also known as choice theory or rational action theory, is a framework for understanding and often formally modeling social and economic behavior. The basic premise of rational choice theory is that aggregate social behavior results from the behavior of individual actors, each of whom is making their individual decisions. The theory also focuses on the determinants of the individual choices.
Rational Expectations Theory
In economics, "rational expectations" are model-consistent expectations, in that agents inside the model are assumed to "know the model" and on average take the model's predictions as valid. Rational expectations ensure internal consistency in models involving uncertainty. To obtain consistency within a model, the predictions of future values of economically relevant variables from the model are assumed to be the same as that of the decision-makers in the model, given their information set, the nature of the random processes involved, and model structure. The rational expectations assumption is used especially in many contemporary macroeconomic models.
Rational Pricing
Rational pricing is the assumption in financial economics that asset prices will reflect the arbitrage-free price of the asset as any deviation from this price will be "arbitraged away". This assumption is useful in pricing fixed income securities, particularly bonds, and is fundamental to the pricing of derivative instruments.
Rationalization
Rationing
Rationing is the controlled distribution of scarce resources, goods, or services, or an artificial restriction of demand. Rationing controls the size of the ration, which is one's allowed portion of the resources being distributed on a particular day or at a particular time. There are many forms of rationing, and in western civilization people experience some of them in daily life without realizing it.
Raw Materials
A raw material, also known as a feedstock or most correctly unprocessed material, is a basic material that is used to produce goods, finished products, energy, or intermediate materials which are feedstock for future finished products. As feedstock, the term connotes these materials are bottleneck assets and are highly important with regard to producing other products. An example of this is crude oil, which is a raw material and a feedstock used in the production of industrial chemicals, fuels, plastics, and pharmaceutical goods; lumber is a raw material used to produce a variety of products including all types of furniture. Metallic raw material production follows the processes such as crushing, roasting, magnetic separation, flotation, and leaching, smelting and alloying.
Razor Razorblade Model
Raúl Alarcón Jr.
Re Offer Price
Reaction
Reaffirmation
Reaganomics
Reaganomics refers to the economic policies promoted by U.S. President Ronald Reagan during the 1980s. These policies are commonly associated with supply-side economics, referred to as trickle-down economics or voodoo economics by political opponents, and free-market economics by political advocates.
Real Asset
Real Bills Doctrine
The real bills doctrine asserts that money should be issued in exchange for short-term real bills of adequate value. The doctrine was developed by practical bankers over centuries of experience, as a means for banks to stay solvent and profitable. Banks that follow it avoid inflation, maturity mismatching, and speculative bubbles and unwanted reflux of money.
Real Body
Real Economic Growth Rate
Real Effective Exchange Rate (REER)
Real Estate Agent
A real estate broker or real estate salesperson is a person who acts as an intermediary between sellers & buyers of real estate/real property. Their mission is to complete a transaction between the buyer and seller.
Real Estate Investment Group
Real estate investment clubs are clubs formed by individuals who want to invest specifically in real estate.
Real Estate Investment Trust (REIT)
Real Estate Investment Trust or REIT
Real Estate Limited Partnership (RELP)
Real Estate Mortgage Investment Conduit (REMIC)
Real Estate Mortgage Investment Conduits (REMIC)
Real Estate Operating Company (REOC)
Real Estate Owned (REO)
Real Estate Settlement Procedures Act (RESPA)
Real Estate Short Sale
Real Estate
Real estate is "property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this an item of real property, buildings or housing in general. Also: the business of real estate; the profession of buying, selling, or renting land, buildings, or housing."
Real Gross Domestic Product (GDP)
Real Income
Real Interest Rate
The real interest rate is the rate of interest an investor, saver or lender receives after allowing for inflation. It can be described more formally by the Fisher equation, which states that the real interest rate is approximately the nominal interest rate minus the inflation rate.
Real Option
Real options valuation, also often termed real options analysis, applies option valuation techniques to capital budgeting decisions. A real option itself, is the right—but not the obligation—to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a capital investment project. For example, the opportunity to invest in the expansion of a firm's factory, or alternatively to sell the factory, is a real call or put option, respectively.
Real Property
In English common law, real property, real estate, realty, or immovable property is land which is the property of some person and all structures integrated with or affixed to the land, including crops, buildings, machinery, wells, dams, ponds, mines, canals, and roads, among other things. The term is historic, arising from the now-discontinued form of action, which distinguished between real property disputes and personal property disputes. Personal property was, and continues to be, all property that is not real property.
Real Rate Of Return
Real Time Gross Settlement (RTGS)
Real Time Quote
Real Time Trade Reporting
Real Time
Real Value
Realization Multiple
Realized Gain
Realized Loss
Realized Yield
Reallowance
Realtor
A real estate broker or real estate salesperson is a person who acts as an intermediary between sellers & buyers of real estate/real property. Their mission is to complete a transaction between the buyer and seller.
Rebalancing
Recession
Resistance
Return on Assets ROA
Return on Assets (Under Review)
Return on Equity
In corporate finance, the return on equity is a measure of the profitability of a business in relation to the book value of shareholder equity, also known as net assets or assets minus liabilities. ROE is a measure of how well a company uses investments to generate earnings growth.
Return on Investment
Return on investment is the ratio between the net profit and cost of investment resulting from an investment of some resource. A high ROI means the investment's gains compare favorably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments. In purely economic terms, it is one way of relating profits to capital invested.
Revenue
Reverse Mortgage
A reverse mortgage is a type of home loan for older homeowners that requires no monthly mortgage payments. Borrowers are still responsible for property taxes and homeowner's insurance. Reverse mortgages allow elders to access the home equity they have built up in their homes now, and defer payment of the loan until they die, sell, or move out of the home. Because there are no required mortgage payments on a reverse mortgage, the interest is added to the loan balance each month. The rising loan balance can eventually grow to exceed the value of the home, particularly in times of declining home values or if the borrower continues to live in the home for many years. However, the borrower is generally not required to repay any additional loan balance in excess of the value of the home.
Risk Management
Risk Tolerance
In economics and finance, risk aversion is the behavior of humans, when exposed to uncertainty, in attempting to lower that uncertainty. It is the hesitation of a person to agree to a situation with an unknown payoff rather than another situation with a more predictable payoff but possibly lower expected payoff. For example, a risk-averse investor might choose to put their money into a bank account with a low but guaranteed interest rate, rather than into a stock that may have high expected returns, but also involves a chance of losing value.
Risk
Roth IRA