Real-Time Trade Reporting
What is 'Real-Time Trade Reporting' A requirement imposed on market makers (and in some instances, non market makers) to report each trade immediately after the transaction is completed. Explaining 'Real-Time Trade Reporting' Traded stocks are subject to real-time trade reporting within 90 seconds of execution. Further Reading The psychophysiology of real-time financial...
Rate Anticipation Swap
What is 'Rate Anticipation Swap' A type of swap in which bonds are exchanged according to their current duration and predicted interest rate movements. A rate anticipation swap is often made in order to take advantage of more profitable bond opportunities. Rate anticipation swaps are speculative in nature, since they depend on the outcome of the expected...
Real Estate Limited Partnership (RELP)
What is 'Real Estate Limited Partnership - RELP' A limited partnership entity organized to invest in real estate. A Real Estate Limited Partnership is typically organized with an experienced property manager or real estate development firm serving as the general partner. Outside investors are then sought to provide financing for the real estate project, in exchange for...
Rational Choice Theory
DefinitionRational 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...
Realtor
What is a realtor Realtors are licensed professionals who help people buy and sell property. In most states, realtors must be at least 18 years old and have a high school diploma. They must also complete an accredited real estate program and pass a state-licensed exam. Realtors must also complete continuing education courses to maintain their license. Real estate is...
Realization Multiple
What is a 'Realization Multiple' A realization multiple is a private equity measurement that values the return paid to an investor. The multiple is named after the amount of return that is realized. The realization multiple is found by dividing the cumulative distributions from a project by the paid-in capital. Explaining 'Realization Multiple' ...
Raintaker
What is 'Raintaker' A former employee of a brokerage firm who takes high-value clientelle from his or her previous employer to his or her new brokerage. The term raintaker is taken from rainmaker, which is used to describe a brokerage employee who brings in large amounts of business to their brokerage. Explaining 'Raintaker' Rainmakers...
Ratable Accrual Method
What is 'Ratable Accrual Method' A method for determining when and how much income was earned over a period of time. The ratable accrual method can be used to compute the interest income for tax purposes. This is opposed to the payment method, and could be used to find the accrued market discount of a discount bond...
Reallowance
What is 'Reallowance' In securities underwriting, the fee that the underwriting group pays to a securities firm that is not part of the syndicate, but that still sells shares in the offering. Reallowance is typically a percentage of the underwriting spread negotiated by the selling syndicate for the issue. It provides a monetary incentive for a broker-dealer that is not...
Real Value
What is the 'Real Value' The real value is nominal value adjusted for inflation. The real value is obtained by removing the effect of price level changes from the nominal value of time-series data, so as to obtain a truer picture of economic trends. The nominal value of time-series data such as gross domestic product and incomes...