Realized Loss
What is 'Realized Loss' A loss is recognized when assets are sold for a price lower than the original purchase price. Realized loss occurs when an asset which was purchased at a level referred to as cost or book value is then disbursed for a value below its book value. Although the asset may have been held...
Real Estate Short Sale
What is a 'Real Estate Short Sale' A real estate short sale is any sale of real estate that generates proceeds that are less than the amount owed on the property. A real estate short sale occurs when a lender and borrower decide that selling a piece of property, thereby absorbing a moderate loss, is preferable to...
Range Accrual
DefinitionIn 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...
Risk Management
Risk management includes all the processes that are used for identifying, analyzing, and either accepting or mitigating the risks that make decision making in investments uncertain. Essentially, risk management is an ongoing process. It can occur any time, especially when a fund manager or an investor is analyzing and attempting to quantify the losses that may be incurred if...
Ramp Up
DefinitionRamp 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. Ramp Up What does 'Ramp Up' mean Ramp up...
Rainmaker
What is 'Rainmaker' A broker or financial advisor who brings a large number of wealthy clients to the firm he or she works for. Rainmakers are skilled at expanding their client base and increasing their assets under management. As such, they are typically highly compensated. Also, because of their proven ability to generate revenue for one firm,...
Real Estate Investment Trust (REIT)
What is a 'Real Estate Investment Trust - REIT' A REIT is a type of security that invests in real estate through property or mortgages and often trades on major exchanges like a stock. REITs provide investors with an extremely liquid stake in real estate. They receive special tax considerations and typically offer high dividend yields. Explaining 'Real Estate...
Rate And Term Refinance
If you're like most homeowners, your mortgage is probably the biggest financial commitment you've ever made. So if you're thinking of refinancing, it's important to understand all the options available to you. One particular option that may be worth considering is a rate and term refinance. Let's take a closer look at what this is and how it might...
Rebalancing
Rebalancing is realigning the weightings of portfolio of assets, so a person may buy or sell their assets in their portfolio to maintain level of asset allocation. In order to comprehend the concept better, let’s take an example. Your asset location consists of 50% bonds and 50% stocks. Over time if the stocks that you have invested in start...
Real Asset
What is a 'Real Asset' Real assets are physical assets that have value due to their substance and properties. Real assets include precious metals, commodities, real estate, agricultural land, machinery and oil. They are appropriate for inclusion in most diversified portfolios because of their relatively low correlation with financial assets such as stocks and bonds. Next Up...