- Fifth letter of a Nasdaq stock symbol specifying that the stock has rights.
- See: Reverse-annuity mortgage
- See: Regulatory accounting procedures
- The two-character ISO 3166 country code for REUNION.
- See: Real Estate Investment Trust
- See: Real Estate Mortgage Investment Conduit
- The two-character ISO 3166 country code for ROMANIA.
- See: Return on assets
- See: Return on capital employed
- See: Return on equity
- See: Return on investment
- The ISO 4217 currency code for the Romanian Leu.
- See: Relative purchasing power parity
- The two-character ISO 3166 country code for RUSSIAN FEDERATION.
- The ISO 4217 currency code for the Russian Rouble.
- The two-character ISO 3166 country code for RWANDA.
- The ISO 4217 currency code for the Rwanda Franc.
- Radar alert
- Close monitoring of trading patterns in a company's stock by senior managers to uncover unusual buying activity that might signal a takeover attempt. See: Shark watcher.
- Individual or corporate investor who
intends to take control of a company (often ostensibly for greenmail) by buying
a controlling interest in its stock and installing
new management. Raiders who accumulate 5% or more of the outstanding
shares in the target
company must report their purchases to the SEC,
the exchange of listing, and the target itself. See: takeover.
- A valuable employee, manager or subcontracted person who brings new business to a company.
- Rally (recovery)
- An upward movement of prices. Opposite of reaction.
- Reverse-annuity mortgages (RAM)
- Bank loan for an amount equal to a percentage of the appraisal value of the home. The loan is then paid to the homeowner in the form of an annuity.
- Random variable
- A function that assigns a real number to each and every possible outcome of a random experiment.
- Random walk
- Theory that stock price changes from day to day are accidental or haphazard; changes are independent of each other and have the same probability distribution. Many believers in the random walk theory believe that it is impossible to outperform the market consistently without taking additional risk.
- Randomized strategy
- A strategy of introducing into the decision-making process a chance element that is designed to confound the information content of the decision-maker's observed choices.
- The high and low prices, or high and low bids and offers, recorded during a specified time.
- Range forward
- A forward exchange rate contract that places upper and lower bounds on the future cost of foreign exchange.
- Rate anticipation swaps
- An exchange of bonds in a portfolio for new bonds that will achieve the target portfolio duration, given the investor's assumptions about future changes in interest rates.
- Rate base
- The value of a regulated public utility and its operations as defined by its regulators and on which the company is allowed to earn a particular rate of return.
- Rate covenant
- A provision governing a municipal revenue project financed by a revenue bond issue, which establishes the rates to be charged users of the new facility.
- Rate of exchange
- See: Exchange Rate
- Rate lock
- An agreement between the mortgage banker and the loan applicant guaranteeing a specified interest rate for a designated period, usually 60 days.
- Rate of interest
- The rate, as a proportion of the principal, at which interest is computed.
- Rate of return
- Calculated as the (value now minus value at time of purchase) divided by value at time of purchase. For equities, we often include dividends with the value now. See also: Return, annual rate of return.
- Rate of return ratios
- Ratios that measure the profitability of a firm in relation to various measures of investment in the firm.
- Rate risk
- In banking, the risk that profits may drop or losses occur because a rise in interest rates forces up the cost of funding fixed-rate loans or other fixed-rate assets.
- An evaluation of credit quality of a company's debt issue by Thomson Financial BankWatch, Moody's, S&P, and Fitch Investors Service. Investors and analysts use ratings to assess the riskness of an investment.
- Ratio analysis
- A way of expressing relationships between a firm's accounting numbers and
their trends over time that analysts use to
establish values and evaluate risks.
- Ratio writer
- An option writer who does not own the number of shares required to cover the call options he or she writes.
- Rational expectations
- The idea that people rationally anticipate the future and respond today to what they see ahead. This concept was pioneered by Nobel Laureate, Robert E. Lucas, Jr.
- Raw material
- Materials a manufacturer converts into a finished product.
- Raw material supply agreement
- As used in connection with project financing, an agreement to furnish a specified amount per period of a specified raw material.
- The ability of a tax shelter or limited partnership to deduct certain costs and expenses at the end of the year that were incurred throughout the entire year.
- A decline in prices following an advance. Opposite of rally.
- Reading the tape
- Judging the performance of stocks by monitoring changes in price as they are displayed on the ticker tape.
- Used in the context of general equities. (1) natural, (2) not dividend roll-or program trading-related; (3) not tax-related. "Real" indications have three major repercussions: a) pricing will be more favorable to the other side of the trade since an investment bank is not committing any capital; b) price pressure will be stronger if real since a natural buyer/seller may have information leading to his decision or more behind it, and c) an uptick may be required for the trader to transact if the indication is not real and the trader has no long position.
- Real assets
- Identifiable assets, such as land and buildings, equipment, patents, and trademarks, as distinguished from a financial investment.
- Real appreciation/depreciation
- A change in the purchasing power of a currency.
- Real body
- On a candlestick line, it is the broad part consisting of the difference between opening and closing prices.
- Real capital
- Wealth that can be represented in financial terms, such as savings account balances, financial securities, and real estate.
- Real cash flow
- Income expressed in current purchasing power terms.
- Real Currency
- The purchasing power in today's currency of future nominal currency to be disbursed or received.
- Real estate
- A piece of land and whatever physical property is on it.
- Real estate appraisal
- An estimate of the value of property using various methods.
- Real estate broker
- An intermediary who receives a commission for arranging and facilitating the sale of a property for a buyer or a seller.
- Real Estate Investment Trust (REIT)
- REITs invest in real estate or loans secured by real estate and issue shares in such investments. A REIT is similar to a closed-end mutual fund.
- Real Estate Mortgage Investment Conduit (REMIC)
- A pass-through tax entity that can hold mortgages secured by any type of real property and can issue multiple classes of ownership interests to investors in the form of pass-through certificates, bonds, or other legal forms. A financing vehicle created under the Tax Reform Act of 1986.
- Real exchange rates
- Exchange rates that have been adjusted for the inflation differential between two countries.
- Real gain or loss
- A gain or loss adjusted for increasing prices by an inflation index such as the CPI.
- Real GDP
- Inflation-adjusted measure of Gross Domestic Product.
- Real income
- The income of an individual, group, or country adjusted for inflation.
- Real interest rate
- The rate of interest excluding the effect of expected inflation; that is, the rate that is earned in terms of constant-purchasing-power dollars. Interest rate expressed in terms of real goods, i.e. nominal interest rate adjusted for expected inflation.
- Real market
- The bid and offer
prices at which a dealer could execute
the desired quantity of shares. Quotes in the brokers
- Real option
- An option or option-like feature embedded in a real investment opportunity.
- Real property
- Land plus all other property that is in some way attached to the land.
- Real rate of return
- The percentage return on some investments that has been adjusted for inflation.
- Real return
- The actual payback on an investment after removing the effect of inflation.
- Real time
- A real-time stock or bond quote is one that states a security's most recent offer to sell or bid (buy). Different from a delayed quote, which shows the same bid and ask prices 15 minutes and sometimes 20 minutes after a trade takes place.
- Realistic on price
- In trading, and indication that the size under consideration requires price give, especially with illiquid stocks. See: Takes price.
- Realized compound yield
- Yield assuming that coupon payments are invested at the going market interest rate at the time of their receipt and held thus until the bond matures.
- Realized profit (or loss)
- A capital gain or loss on securities held in a portfolio that has become actual by the sale or other type of surrender of one or many securities.
- Realized return
- The return that is actually earned over a given time period.
- Realized yield
- The holding-period return actually generated from an investment in a bond.
- A specific designation given to members of real estate firms affiliated with the National Association of Realtors (NAR) who are trained and licensed to assist clients in buying and selling real estate.
- Realigning the proportions of assets in a portfolio as needed.
- Negotiated return of a portion of the interest earned by the lender of stock to a short seller. When a stock is sold short, the seller borrows stock from an owner or custodian and delivers it to the buyer. The proceeds are delivered to the lender. The borrower, who is short, often wants a rebate of the interest earned on the proceeds under the lender's control, especially when the stock can be borrowed from many sources. Note: The seller must pay the lender any dividends paid out or, in the case of bonds, interest that accrues daily during the term of the loan.
- Recalculation method
- A method of calculating required minimum distributions from a retirement plan using life expectancy tables. Unisex data tables allow a plan holder to determine the applicable life expectancy each year a distribution is required.
- Recapitalization proposal
- Often used in risk arbitrage. Plan by a target company to restructure its capitalization (debt and equity) in a way to ward off a hostile or potential suitor.
- A provision in a contract that allows one party to recover (recapture) some degree of possession of an asset, such as a share of the profits derived from some property.
- Funds collected from selling land, capital, or services, as well as collections from the public (budget receipts), such as taxes, fines, duties, and fees.
- Receive floating counterparty
- The transaction in an interest rate swap who receives payments based on the floating rate and makes payments based on the fixed rate.
- Receive versus payment
- An instruction that only cash will be accepted in exchange for delivery of securities.
- Receivables balance fractions
- The percentage of a month's sales that remains uncollected (and part of accounts receivable) at the end of succeeding months.
- Receivables turnover ratio
- Total operating revenues divided by average receivables. Used to measure how effectively a firm is managing its accounts receivable.
- A bankruptcy practitioner appointed by secured creditors to oversee the repayment of debts.
- Receiver's certificate
- A debt instrument issued by a receiver and serving as a lien on the property, which provides funding to continue operations or to protect assets in receivership.
- A temporary downturn in economic activity, usually indicated by two consecutive quarters of a falling GDP.
- The reversal of a traditional IRA contribution or conversion into a Roth IRA, or vice versa.
- Reciprocal marketing agreement
- A strategic alliance in which two companies agree to comarket each other's products. Production rights may or may not be transferred.
- A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process.
- Record date
- (1) Date by which a shareholder must officially own shares in order to be entitled to a dividend. For example, a firm might declare a dividend on Nov. 1, payable Dec. 1 to holders of record Nov. 15. Once a trade is executed, an investor becomes the "owner of record" on settlement, which currently takes five business days for securities and one business day for mutual funds. Stocks trade ex-dividend the fourth day before the record date, since the seller will still be the owner of record and is thus entitled to the dividend. (2) The date that determines who is entitled to payment of principal and interest due to be paid on a security. The record date for most MBS is the last day of the month, although the last day on which an MBS may be presented for the transfer is the last business day of the month. The record dates for CMOs and asset-backed securities vary with each issue.
- Term describing a type of loan. If a loan is with recourse, the lender has a general claim against the parent company if the collateral is insufficient to repay the debt.
- The use of depreciation of assets to offset costs; or a new period of rising securities prices after a period of declining security values.
- Redemption date
- The date on which a bond matures or is redeemed.
- Redemption fee
- A fee some mutual funds charge when an investor sells shares within a specified short period of time.
- Redemption price
- See: Call price
- Red herring
- A preliminary prospectus providing information required by the SEC. It excludes the offering price and the coupon of the new issue.
- Eligible for redemption under the terms of an indenture.
- Repayment of a debt security
or preferred stock issue,
at or before maturity, at par
or at a premium price.
- Redemption charge
- The commission a mutual fund charges an investor who is redeeming shares. For example, a 2% redemption charge (also called a back end load) on the sale of shares valued at $1000 will result in payment of $980 (or 98% of the value) to the investor. This charge may decline or be eliminated as shares are held for longer time periods.
- Redemption cushion
- The percentage by which the conversion value of a convertible security exceeds the redemption price (strike price).
- Redemption or call
- Right of the issuer to force holders on a certain date to redeem their convertibles for cash. The objective usually is to force holders to convert into common prior to the redemption deadline. Typically, an issue is not called away unless the conversion price is 15%-25% below the current level of the common. An exception might occur when an issuer's tax rate is high, and the issuer could replace it with debt securities at a lower after-tax cost.
- To discount short-term negotiable debt instruments for a second time, after they have been discounted with a bank.
- Illegal discrimination in making loans, insurance coverage, or other financial services available to people or property in certain areas because of poor economic conditions, high levels of fraudulent transaction, or frequent defaults.
- Reduction-Option Loan (ROL)
- A hybrid of a fixed-rate and adjustable-rate mortgage. An ROL the borrower to match the current mortgage rate, which then becomes fixed for the rest of the term. This reduction is usually allowed if rates drop more than 2% in a year.
- Reference rate
- A benchmark interest rate (such as LIBOR) used to specify conditions of an interest rate swap or an interest rate agreement.
- An extension and/or increase in amount of existing debt.
- Government monetary action that causes a reversal of deflation.
- To retire existing bond issues through the sale of a new bond issue, usually to reduce the interest rate being paid.
- Eligible for refunding under the terms of a bond indenture.
- Refunded bond
- Also called a prerefunded bond, a bond that originally may have been issued as a general obligation or revenue bond but that is now secured by an escrow fund consisting entirely of direct U.S. government obligations that are sufficient for paying the bondholders.
- Redeeming a bond with proceeds received from issuing lower-cost debt obligations with ranking equal to or superior to the debt to be redeemed.
- Refunding Escrow Deposits (REDs)
- A financial instrument involving a forward purchase contract that obligates investors to buy bonds at a certain rate when issued. The future date coincides with the first optional call date on an existing high-rate bond. In the interim, investors' money is invested in secondary market Treasury bonds. The Treasuries mature around the call date on the existing bonds, providing the money to buy the new issue and redeem the old one.
- Regional bank
- A bank operating in a specific region of the country, taking deposits and offering loans.
- Regional fund
- A mutual fund that invests in a specific geographic area overseas, such as Asia or Europe.
- Regional stock exchanges
- Organized national securities exchanges located outside of New York City
and registered with the SEC They include:
the Boston, Cincinnati, Intermountain (Salt Lake City-dormant, owned by COMEX),
Midwest (Chicago), Pacific (Los Angeles and San Francisco), Philadelphia (Philadelphia
and Miami), and Spokane (local mining and Canadian issues, non-reporting trades)
- Registered bond
- A bond whose issuer records ownership and interest payments. Differs from a bearer bond, which is traded without record of ownership and whose possession is the only evidence of ownership.
- Registered check
- A check issued and guaranteed by a bank for a customer who provides funds for payment of the check.
- Registered company
- A company that is listed with the SEC after submission of a required statement and compliance with disclosure requirements.
- Registered competitive market maker
- An NASD-registered dealer who acts as a market maker for a designated over-the-counter stock by buying and selling that stock to maintain stability.
- Registered equity market maker
- Member firm of the American Stock Exchange registered as a trader to make stabilizing trades for its own account in particular securities.
- Registered investment adviser
- SEC-registered individual or firm that substantiates completion of education and work experience in the field, and pays an annual membership fee.
- Registered investment company
- An investment firm which is registered with the SEC and complies with certain stated legal requirements.
- Registered options trader
- An American Stock Exchange specialist who monitors a certain group of options to help maintain a fair and orderly market.
- Registered Retirement Savings Plan (RRSP)
- Tax-sheltered retirement plan for Canadian citizens, much like an American IRA.
- Registered representative
- A person registered with the CFTC who is employed by and solicits business for a commission house or futures commission merchant.
- Registered secondary offering
- A reoffering of a large block of securities, previously publicly issued, by the holder of a large portion of some corporation through an investment firm.
- 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 trader
- A member of the exchange who executes frequent trades for his or her own account.
- Financial institution appointed to record issue and ownership of company securities.
- In the securities market describes process set up pursuant to the Securities
Exchange Acts of 1933 and 1934 whereby securities
that are to be sold to the public are reviewed by the SEC.
- Registration statement
- A legal document filed with the SEC to
register securities for public offering
that details the purpose of the proposed public offering. The statement outlines
financial details, a history of the company's operations and management, and
other facts of importance to potential buyers. See: Registration.
- A mathematical technique used to explain and/or predict. The general form is Y = a + bX + u, where Y is the variable that we are trying to predict; X is the variable that we are using to predict Y, a is the intercept; b is the slope, and u is the regression residual. The a and b are chosen in a way to minimize the squared sum of the residuals. The ability to fit or explain is measured by the R-square.
- Regression analysis
- A statistical technique that can be used to estimate relationships between variables.
- Regression coefficient
- Term yielded by regression analysis that indicates the sensitivity of the dependent variable to a particular independent variable. See: Parameter.
- Regression equation
- An equation that describes the average relationship between a dependent variable and a set of explanatory variables.
- Regression toward the mean
- The tendency that a random variable will ultimately have a value closer to its mean value.
- Regressive tax
- A tax system that provides that average tax rates decrease with increases in individuals' income brackets.
- Regular settlement
- Transaction in which a stock contract is settled and delivered on the fifth full business day following the date of the transaction (trade date). In Japan, regular settlement occurs three business days following the trade date; in London, two weeks following the trade date (at times, three weeks); in France, once per month.
- Regular way settlement
- In the money and bond markets, the standard basis on which some security trades are settled is that the delivery of the securities purchased is made against payment in Fed funds on the day following the transaction.
- Regulated commodities
- The group of registered commodity futures and options contracts traded on organized U.S. futures exchanges.
- Regulated investment company
- An investment company allowed to pass capital gains, dividends, and interest earned on fund investments directly to its shareholders so that it is taxed only at the personal level, and double taxation is avoided.
- Regulation A
- A Federal Reserve Board regulation that exempts small public offerings, valued at less than $1.5MM from most registration requirements with the SEC.
- Regulation D
- Federal Reserve Board regulation that currently requires member banks to hold reserves against their net borrowings from foreign offices of other banks over a 28-day averaging period. Regulation D has been merged with Regulation M.
- Regulation FD (fair disclosure)
- U.S. SEC regulation whose purpose is to ensure that select groups of investors are not privy to firm-specific information before other investors. Executives are not allowed to reveal nonpublic information during their communications with analysts and select shareholders. If information is inadvertently released, they must take steps to broaden the dissemination of the information within 24 hours of discovering the disclosure.
- Regulation G
- Federal Reserve Board regulation of lenders other than commercial banks, brokers, or dealers that provide credit for the purchase of or carrying of securities. This regulation was discontinued by a 1998 amendment.
- Regulation M
- Federal Reserve Board regulation that currently requires member banks to hold reserves against their net borrowings from their foreign branches over a 28-day averaging period. Reg M has also required member banks to hold reserves against Eurodollars lent by their foreign branches to domestic corporations for domestic purposes.
- Regulation Q
- Federal Reserve Board regulation imposing caps on the rates that banks may pay on savings and time deposits. Currently time deposits with a denomination of $100,000 or more are exempt from Reg Q.
- Regulation T
- Federal Reserve Board regulation that deals with granting credit to customers by securities brokers, dealers, and exchange member as far as initial margin requirements and securities that are covered under the rules.
- Regulation T Calls
- Federal Reserve Board Regulation T margin calls are issued when a customer makes a
transaction in a margin account and does not meet the minimum initial
requirement of 50% cash or loan available. This margin call is referred to as a Fed Call. The customer must increase the equity in the account by depositing additional funds and/or
marginable securities. If the necessary amount of cash or securities is
not deposited into the account within the specified time period,
securities may be sold to meet the call, and the account may become
- Regulation U
- Federal Reserve Board limit on how much credit a bank can allow a customer for the purchase and carrying of margin securities.
- Rules specifying the appropriate behavior of agencies, organizations or
individuals in the securities industry.
- Regulatory accounting procedures (RAP)
- Accounting principles required by the FHLB that allow S&Ls to elect annually to defer gains and losses on the sale of assets and amortize these deferrals over the average life of the asset sold.
- Regulatory pricing risk
- Risk that arises when insurance companies
are subject to regulation of the premium
rates that can they charge.
- Regulatory surplus
- The surplus as measured using regulatory accounting principles (RAP), which may allow the nonmarket valuation of assets or liabilities and which may be materially different from economic surplus.
- Pledging to banks by securities brokers of the amount in customers' margin account as collateral for broker loans, which are used to cover margin loans to customers for margin purchases and selling short.
- Payment made to someone for out-of-pocket expenses has incurred.
- The restoration of an insurance policy after it has lapsed for nonpayment of premiums.
- The spreading of risk and division of client premiums among insurance companies allowing the sharing of the burden of a large risk.
- 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.
- Reinvestment date
- The date on which an investment's dividend or capital gains income is reinvested, if requested by the shareholder, to purchase additional shares. Also known as the ex-dividend date.
- Reinvestment effect
- The impact of a change in interest rates on the reinvestment rate.
- Reinvestment privilege
- A shareholder's right to reinvest dividends and buy more shares in the corporation or mutual fund.
- Reinvestment rate
- The rate at which an investor assumes interest payments made on a debt security can be reinvested over the life of that security.
- Reinvestment risk
- The risk that proceeds received in the future may have to be reinvested at a lower potential interest rate.
- Reinvoicing center
- A central financial subsidiary an MNC uses to reduce transaction exposure by billing all home country exports in the home currency and reinvoicing to each operating affiliate in that affiliate's local currency. It can also be used as a netting center.
- Refusal by a bank to grant credit, usually because of the applicants financial history, or refusal to accept a security presented to complete a trade, usually because of a lack of proper endorsements or violation of rules of a firm.
- Relative form of purchasing power parity
- Theory that the rate of change in the prices of products should be somewhat similar, but not absolutely the same when measured in a common currency, as long as transportation costs and trade barriers are unchanged.
- Relative purchasing power parity (RPPP)
- Idea that the rate of change in the price level of commodities in one country relative to the price level in another determines the rate of change of the exchange rate between the two countries' currencies.
- Relative strength
- Movement of a stock price over the past
year as compared to a market index (like
the S&P 500). A value below 1.0 means
the stock shows relative weakness in price movement (underperformed the market);
a value above 1.0 means the stock shows relative strength over the one-year period.
Equation for Relative Strength: [current stock price/year-ago stock price]
divided by [current S&P 500/year-ago S&P 500]. Note this can be a
misleading indicator of performance because it does not take risk
- Relative value
- The attractiveness measured in terms of risk, liquidity, and return of one instrument relative to another, or, for a given instrument, of one maturity relative to another.
- Relative yield spread
- The ratio of the yield spread to the yield level. Used for bonds.
- Relieve party to a trade of any previously made obligation concerning that trade, hence allowing the would-be transactor to show the inquiry/order to a new broker.
- Release clause
- A mortgage provision that releases a pledged asset after a certain portion of the total payments has been made.
- One who receives the principal of a trust when it is dissolved.
- Remaining maturity
- The length of time remaining until a bond comes due
- Remaining principal balance
- The amount of principal dollars remaining to be paid under a mortgage as of a given time.
- Putting up additional cash or securities after a margin call on a brokerage customer's margin account so that it meets minimum maintenance requirements.
- Rembrandt market
- The foreign market in the Netherlands.
- To pay for purchases by cash, check, or electronic transfer.
- Remote disbursement
- Technique that involves writing checks drawn on banks in remote locations so as to maximize disbursement float.
- Placement of a day order identical to one not completed on the previous day.
- Renewable term life insurance
- A policy for a stated period that may be renewed if desired at the end of the term.
- Regular payments to an owner for the use of some leased property.
- Rental lease
- See: Full-service lease
- Rent control
- Municipal regulation restricting the amount of rent that a building owner can charge.
- Reoffering yield
- In a purchase and sale, the yield to maturity at which an underwriter offers to sell bonds to investors.
- Reopen an issue
- The Treasury, when it wants to sell additional securities, will occasionally sell more of an existing issue (reopen it) rather than offer a new issue.
- Treasury offerings of additional amounts of outstanding issues, rather than an entirely new issue. A reopened issue will always have the same maturity date, CUSIP number, and interest rate as the original issue.
- Creation of a plan to restructure a debtor's business and restore its financial health.
- Reorganization bond
- A bond issued by a company undergoing a reorganization process.
- The return from abroad of the financial assets of an organization or individual.
- Replacement Chain
- A concept that views a capital investment as an indefinite commitment to a specific type of technology. The replacement chain concept can be used to allow the comparison of mutually exclusive investments with unequal lives.
- Replacement cost
- Cost to replace a firm's assets.
- Replacement cost accounting
- An accounting method that includes as part of depreciation the difference between the original purchase price of an asset and the current replacement cost.
- Replacement cost insurance
- Insurance that pays out the full amount required to replace damaged property with new property, without taking into account the depreciated value of the property.
- Replacement cycle
- The frequency with which an asset is replaced by an equivalent asset.
- Replacement value
- Current cost of replacing the firm's assets.
- Replacement-chain problem
- Idea that future replacement decisions must be taken into account in selecting among projects.
- Replicating portfolio
- A portfolio constructed to match an index or benchmark.
- An agreement in which one party sells a security to another party and agrees to repurchase it on a specified date for a specified price. See: Repurchase agreement.
- Written or oral confirmation that all or part of one's order has been executed, including the price and size parameters of the trade being reported; often followed by a fresh picture.
- Reported factor
- The pool factor as reported by the bond buyer for a given amortization period.
- Reporting currency
- The currency in which the parent firm
prepares its own financial statements; that is, US dollars for a US company.
- Reproducible assets
- A tangible asset with physical properties that can be matched or duplicated, such as a building or machinery.
- Repurchase agreement
- An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. Also called a repo, it represents a collateralized short-term loan for which, where the collateral may be a Treasury security, money market instrument, federal agency security, or mortgage-backed security. From the purchaser's (customer's) perspective, the deal is reported as a reverse repo.
- Repurchase of stock
- Technique to pay cash to firm's shareholders that provides more preferential tax treatment for shareholders than dividends. Treasury stock is the name given to previously issued stock that has been repurchased by the firm. A repurchase is achieved through either a Dutch auction, open market, purchase, or tender offer.
- Required minimum distribution (RMD)
- The minimum amount that the IRS requires must be withdrawn each year from all tax-advantaged retirement plans starting in the calendar year following the year in which the plan holder reaches age 70-1/2. Roth IRAs are exempt from this rule.
- Required Rate of Return (RRR)
- The minimum expected yield by investors
require in order to select a particular investment.
- Required reserves
- The dollar amounts, based on reserve ratios, that banks are required to keep on deposit at a Federal Reserve Bank.
- Required return
- The minimum expected return you would need in order to purchase an asset, that is, to make the investment.
- Required yield
- Generally referring to bonds; the yield required by the marketplace to match available expected returns for financial instruments with comparable risk.
- Rescaled Range (R/S)
- The analysis developed by H.E. Hurst to determine long-memory effects and
motion. Rescaled range analysis measures how the distance covered by a particle
increases as we look at longer and longer time scales. For Brownian motion, the distance
covered increases with the square root of time. A series which increases at a different rate is not random.
See: Anti-persistence, Fractional Brownian Motion,
Hurst Exponent, Persistence, Joseph Effect, Noah Effect.
- Rescheduled loans
- Bank loans that are usually altered to have longer maturities in order to assist the borrower in making the necessary repayments.
- To cancel a contract because of misrepresentation, fraud, or illegal procedure.
- Research and development (R"D)>
- Development of new products and services by a company in order to obtain a competitive advantage.
- Research and development limited partnership
- A partnership whose investors put up money to finance new product R&D in return for profits generated from the products.
- Research department
- The office in an institutional investing organizations that analyzes markets and securities.
- Research portable
- Service offered to clients that transmits investment bank research electronically by computers.
- An accounting entry that properly reflects contingent liabilities.
- Reserve currency
- A foreign currency held by a central bank or monetary authority for the purposes of exchange intervention and the settlement of intergovernmental claims.
- Reserve ratios
- Specified percentages of deposits, established by the Federal Reserve Board, that banks must keep in a noninterest-bearing account at one of the twelve Federal Reserve Banks.
- Reserve requirements
- The percentage of different types of deposits that member banks are required to hold on deposit at the Fed.
- Reservation price
- The price below or above which a seller or purchaser is unwilling to go.
- Reset bonds
- Bonds that allow the initial interest rates to be adjusted on specific dates in order that the bonds trade at the value they had when they were issued.
- Reset frequency
- The frequency with which the floating rate changes.
- Residential mortgage
- Mortgage on a residential property, tax-deductible for individuals up to $1 million.
- Residential property
- Property that consists of homes, apartments, townhouses, and condominiums.
- Residual assets
- Assets that remain after sufficient assets are dedicated to meet all senior debtholders' claims in full.
- Residual claim
- Related: Equity claim
- Residual dividend approach
- An approach that suggests that a firm pay dividends if and only if acceptable investment opportunities for those funds are currently unavailable.
- Residual method
- A method of allocating the purchase price for the acquisition of another firm among the acquired assets.
- Residual Return
- Return independent of the benchmark. The residual return is the return
relative to beta times the benchmark return. To be
exact, an asset's residual return equals its excess return minus beta times the benchmark excess return.
- Residual risk
- Related: Unsystematic risk
- (1) Part of stock returns not explained by the explanatory variable (the market index return). Residuals measure the impact of firm-specific events during a particular period. (2) Remainder cash flows generated by pool collateral and those needed to fund bonds supported by the collateral.
- Residual value
- Usually refers to the value of a lessor's property at the time the lease expires.
- Speed with which new orders respond to a change in prices.
- An effective upper bound on prices achieved because of many willing sellers at that price level.
- Resistance level
- A price level above which it is supposedly difficult for a security or market to rise. Price ceiling at which technical analysts note persistent selling of a commodity or security. Antithesis of support level.
- A document that records a decision or action by a board of directors, or a bond resolution by a government entity authorizing a bond issue.
- Resolution Funding Corporation (RefCorp)
- A government agency established by Congress in 1989 to issue bailout bonds and raise funds for the activities of the Resolution Trust Corporation, as well as to administer struggling institutions inherited from the disbanded Federal Savings and Loan Corporation.
- Resolution Trust Corporation (RTC)
- A government agency established in 1989 and disbanded in 1996 that administered
and loan institutions that were insolvent between 1989 and August 1992
by either bailing them out or merging them.
- Placed on a list that dictates that the trader may not maintain positions, solicit business, or provide indications in a stock, but may serve as broker in agency trades after being properly cleared. Traders are so restricted due to investment bank involvement with the company on nonpublic activity (i.e., mergers and acquisitions defense), affiliate ownership, or underwriting activities; signified on the Quotron by a flashing "R." A restricted list and the stocks on it should never be conveyed to anyone outside of the trading areas, much less outside the firm. See: Grey list.
- Restricted account
- A margin account without enough equity to meet the initial margin requirement that is restricted from any purchases until the requirement is fulfilled.
- Restricted surplus
- A portion of retained earnings not allowed by law to be used for the payment of dividends.
- Restricted stock
- Stock that must be traded
in compliance with special SEC
regulations concerning its purchase and resale. These restrictions generally
result from affiliate ownership, M&A
activity, and underwriting activity.
- Restrictive covenants
- Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends.
- Restrictive endorsement
- An endorsement signature on the back of a check that specifies the conditions under which the check can be transferred or paid out.
- The reorganization of a company in order to attain greater efficiency and to adapt to new markets. Major corporate restructuring
transactions include mergers, acquisitions, tender offers, leveraged buyouts, divestitures, spin-offs, equity carve-outs, liquidations and reorganizations.
- Resyndication limited partnership
- The sale of existing properties to new limited partners, so that they can receive the tax advantages that are no longer available to the old partners.
- Individual and institutional customers as opposed to dealers and brokers.
- Retail credit
- Credit granted by a firm to consumers for the purchase of goods or services. See: consumer credit.
- Retail house
- A brokerage firm that caters to individual customers rather than large institutions.
- Retail investors
- Small individual investors who commit
capital for their personal account rather than on behalf of another company.
- Retail price
- The total price charged for a product sold to a customer, which includes the manufacturer's cost plus a retail markup.
- Retained earnings
- Accounting earnings that are retained by the firm for reinvestment in its operations; earnings that are not paid out as dividends.
- Retained earnings statement
- A statement of all transactions affecting the balance of a company's retained earnings account.
- The number of units allocated to an underwriting syndicate member less the units held back by the syndicate manager for facilitating institutional sales and for allocation to nonmember firms.
- Retention rate
- The percentage of present earnings held back or retained by a corporation, or one minus the dividend payout rate. Also called the retention ratio.
- To extinguish a security, as in paying off a debt.
- Removal from circulation of stock or bonds that have been reacquired or redeemed.
- Retirement Protection Act of 1994
- Legislation designed to protect the pension benefits of workers and retirees by increasing required support of pension plans by employers.
- A price movement in the opposite direction of the previous trend.
- The change in the value of a portfolio over an evaluation period, including any distributions made from the portfolio during that period.
- Return of capital
- A cash distribution resulting from the sale of a capital asset, or securities, or tax breaks from depreciation.
- Return on assets (ROA)
- Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets).
- 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. ROE may be decomposed into return on assets (ROA) multiplied by financial leverage (total assets/total equity).
- Return on investment (ROI)
- Generally, book income as a proportion of net book value.
- Return on sales
- A measurement of operational efficiency equaling net pre-tax profits divided by net sales expressed as a percentage.
- Return on total assets
- The ratio of earnings available to common stockholders to total assets.
- Return-to-maturity expectations
- A variant of pure expectations theory that suggests that the return an investor will realize by rolling over short-term bonds to some investment horizon will be the same as holding a zero-coupon bond with a maturity that is the same as that investment horizon.
- International news and quotation service based in London.
- An increase in the foreign exchange value of a currency that is pegged to other currencies or gold.
- Revenue Anticipation Note (RAN)
- A short-term municipal debt issue that will be repaid with anticipated revenues, such as sales taxes, from the project.
- Revenue bond
- A bond issued by a municipality to finance either a project or an enterprise in which the issuer pledges to the bondholders the revenues generated by the operation of the projects financed. Examples are hospital revenue bonds and sewer revenue bonds.
- Revenue fund
- A fund accounting for all revenues from an enterprise financed by a municipal revenue bond.
- Revenue Reconciliation Act of 1993
- Legislation created to reduce the federal budget deficit by cutting spending and increasing taxes.
- Revenue sharing
- The percentage split between the general partner and limited partners of profits and losses resulting from the operation of the involved business.
- Turn, unwind. For convertible reversal, selling a convertible and buying the underlying common, usually effected by an arbitrageur. For market reversal, change in direction in the stock or commodity futures markets, as charted by technical analysts in trading ranges. For options reversal, closing the positions of each aspect of an options spread or combination strategy.
- Reverse a swap
- Reswap of bonds to gain the advantage of a yield spread or tax loss and restore a bond portfolio to its position before the original swap.
- Reverse conversion
- A technique in which brokerage firms earn interest on the stocks they hold for their customers by selling the short and investing the proceeds in money market accounts. The short positions are hedged to protect against adverse market conditions.
- Reverse leverage
- Occurs when the interest on borrowings exceeds the return on investment of the funds that were borrowed.
- Reverse leveraged buyout
- Bringing back into publicly traded status a company that had been privatized by way of a leveraged buyout.
- Reverse mortgage
- A mortgage agreement allowing a homeowner to borrow against home equity and receive tax-free payments until the total principal and interest reach the credit limit of equity, and the lender is either repaid in full or takes the house.
- Reverse price risk
- A type of mortgage pipeline risk that occurs when a lender commits to sell loans to an investor at rates prevailing at the time of mortgage application but sets the note rates when the borrowers closes. The lender is thus exposed to the risk of falling rates.
- Reverse repo
- In essence, refers to a repurchase agreement. From the customer's perspective, the customer provides a collateralized loan to the seller.
- Reverse stock split
- A proportionate decrease in the number of shares, but not the total value of shares of stock held by shareholders. Shareholders maintain the same percentage of equity as before the split. For example, a 1-for-3 split would result in stockholders owning one share for every three shares owned before the split. After the reverse split, the firm's stock price is, in this example, three times the pre-reverse split price. A firm generally institutes a reverse split to boost its stock's market price. Some think this supposedly attracts investors.
- Reversing trade
- Entering the opposite side of a currently held futures position to close out the position.
- Revised estimate
- The third estimate of GDP released about three months after the measurement period.
- Revisionary trust
- An irrevocable trust that becomes a revocable trust after a certain amount of time.
- Revocable letter of credit
- Assurance of funds issued by a bank that can be canceled at any time without
prior notification to the beneficiary.
- Revocable trust
- A trust that may altered as many times as desired in which income-producing property passes directly to the beneficiaries at the time of the grantor's death. Since the arrangement can be altered at any time, the assets are considered part of the grantor's estate and they are taxed as such.
- Revolving credit agreement
- A legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period.
- Revolving line of credit
- A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years.
- Reward-to-volatility ratio
- Ratio of excess return to portfolio standard deviation.
- Term for a security whose price seems too high in light of its price history.
- Stands for Racketeer Influenced and Corrupt Organization Act. Legislation under/which inside traders may be convicted.
- A form accompanying an insurance policy that alters the policy's terms or coverage.
- Riding the yield curve
- Buying long-term bonds in anticipation of capital gains as yields fall with the declining maturity of the bonds.
- Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994
- Law permitting interstate banking in the US
- Rigged market
- Manipulation of prices in a market to attract buyers and sellers.
- Privilege granted shareholders of a corporation to subscribe to shares of a new issue of common stock before it is offered to the public. Such a right, which normally has a life of two to four weeks, is freely transferable and entitles the holder to buy the new common stock below the public offering price. See: Warrant.
- Right here
- Used in the context of general equities. In-line, emphasizing that this is a customer inquiry that is ready to be executed and not distant on price. See: Tight.
- 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. Rights offerings are particularly common to closed-end funds, which cannot otherwise issue additional common stock.
- Right of first refusal
- The right of a person or company to purchase some thing before the offering is made to others.
- Right of redemption
- The right to recover property that has been attached by paying off the debt .
- Right of rescission
- The right to void a contract without any penalty within three days as provided in the Consumer Credit Protection Act of 1968.
- Shares trading with rights attached to them.
- Rights of set-off
- An agreement defining each party's rights should one party default
on its obligation. A setoff is common in parallel
- Trading arenas located on the floor of an exchange in which traders execute orders. Sometimes called a pit.
- "Ring the cash register"
- Used in the context of general equities. "Take a profit." See: Profit taking.
- Rising bottoms
- Chart pattern showing an increasing trend in the daily low prices of a security or commodity.
- 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. See: Systematic risk.
- Risk-adjusted discount rate
- The rate established by adding a expected risk premium to the risk-free rate in order to determine the present value of a risky investment.
- Risk-adjusted profitability
- A probability used to determine a "sure" expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value.
- Risk-adjusted return
- Often we subtract from the rate of
return on an asset a rate of return from
another asset that has similar risk. This gives
an abnormal rate of return that shows how the asset performed over and above
a benchmark asset with the same risk.
We can also use the beta against the benchmark
to calculate an alpha, which is also risk-adjusted
- Risk arbitrage
- Traditionally, the simultaneous purchase of stock in a company being acquired and the sale of stock of the acquirer. Modern risk arbitrage focuses on capturing the spreads between the market value of an announced takeover target and the eventual price at which the acquirer will buy the target's shares.
- Describes an investor who, when faced with two investments with the same expected return but different risks, prefers the one with the lower risk.
- Risk-based capital ratio
- Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset.
- Risk classes
- Groups of projects that have approximately the same amount of risk.
- Risk controlled arbitrage
- A self-funding, self-hedged series of transactions that generally use mortgage securities (MBS) as the primary assets.
- Risk factor
- In arbitrage pricing theory or the multibeta capital asset pricing model, the set of common factors that impact returns, e.g., market return, interest rates, inflation, or industrial production.
- Risk-Free Interest Rate
- Describes return available to an investor
in a security somehow guaranteed to produce
that return. The risk-free interest rate
compensates the investor for the temporary
sacrifice of consumption.
- 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.
- Risk profile
- The slope of a line graphed according to the value of an underlying asset on the x-axis and the value of a position exposed to risk in the underlying asset on the y-axis. Also used with changes in value. See: Payoff profile.
- Risk-return trade-off
- The tendency for potential risk to vary directly with potential return, so that the more risk involved, the greater the potential return, and vice versa.
- Risk tolerance
- An investor's ability or willingness to accept declines in the prices of investments while waiting for them to increase in value.
- Riskless arbitrage
- The simultaneous purchase and sale of the same asset to yield a profit.
- Riskless or risk-free asset
- An asset whose future return
is known today with certainty. The risk-free
asset is commonly defined as short-term obligations of the US government.
- Riskless rate
- The rate earned on a riskless investment, typically the rate earned on the
90-day US Treasury Bill.
- Riskless rate of return
- The rate earned on a riskless asset.
- Riskless transaction
- A transaction that is guaranteed a profit, such as the arbitrage of a temporary differential between commodity prices in two different markets. The evaluation of whether dealer markups and markdowns in OTC transactions are reasonable. According to NASD, markups or markdowns should not exceed 5%.
- Risk lover
- A person willing to accept lower expected returns on prospects with higher amounts of risk.
- Risk management
- The process of identifying and evaluating risks and selecting and managing techniques to adapt to risk exposures.
- Insensitive to risk.
- Willing to pay money to assume risk from others.
- Risk premium
- The reward for holding the risky equity market portfolio rather than the risk-free asset. The spread between Treasury and non-Treasury bonds of comparable maturity.
- Risk premium approach
- A common approach for tactical asset allocation to determine the relative valuation of asset classes based on expected returns.
- Risk profile
- A mapping of the change in value or profits and losses to which an organization has exposure.
- The basic concept that higher expected returns accompany greater risk, and vice versa.
- Risk-reward ratio
- Relationship of substantial reward corresponding to the amount of risk taken; mathematically represented by dividing the expected return by the standard deviation.
- Risk seeker
- Investor who likes to take risk and is even willing to pay for it. Also called risk lover.
- Risk transfer
- The shifting of risk through insurance or securitization of debt because of risk aversion.
- Risky asset
- An asset whose future return is uncertain.
- Risk-adjusted return
- Return earned on an asset normalized for the amount of risk associated with that asset.
- Risk-free asset
- An asset whose future normal return is known today with certainty.
- Risk-free rate
- The rate earned on a riskless asset.
- Road show
- A promotional presentation by an issuer of securities to potential buyers about the desirable qualities of the investments.
- An active asset management strategy that tactically overweighted and underweighted certain sectors, depending on expected performance. Sometimes called sector rotation.
- Rocket scientist
- An employee of an investment firm (often
having a Ph.D. in physics or mathematics) that works on highly mathmatic models
of derivative pricing.
- Roll down
- To move to an option position with a lower exercise price.
- Roll forward
- To move to an option position with a later expiration date.
- Roll, Richard
- Author of path-breaking work on asset pricing including the famous Roll critique. Finance professor at UCLA.
- Roll order
- (1) Dividend roll; (2) Replacement of a maturing position with an identical one in the new maturity; (3) Recognizition of capital gain or loss while reestablishing the position at the risk of the market.
- Roll over
- To reinvest funds received from a maturing security in a new issue of the same or a similar security.
- Roll up
- To move to an option position with a higher exercise price. In venture capital, refers to the venture capitalist forcing small firms to merge operations in order to reduce costs
- Rolling of Futures
- As financial futures have
short-term maturities, often 3-9 months, before or at maturity, the future must be sold and a new future (for the same asset but with a new maturity) must be repurchased.
- Means that a loan is periodically repriced at an agreed spread over the appropriate, currently prevailing rate. Most term loans in the Euromarket are made on a rollover basis as to current LIBOR rate.
- Rollover IRA
- A traditional individual retirement account holding money from a qualified plan or 403(b) plan. These assets, as long as they are not mixed with other contributions, can later be rolled over to another qualified plan or 403(b) plan. Also known as a conduit IRA.
- Roll's Critique
- That the CAPM holds by construction when performance is measured against a mean-variance efficient index; otherwise, it holds not at all. Attributable to Richard Roll in 1977.
- Ross, Stephen
- Developer of the Arbitrage Pricing Theory. Finance professor at MIT.
- Roth IRA
- Individual Retirement Account that allows contributors to invest up to $2,000 per year, and to withdraw the principal and earnings totally tax-free under certain conditions.
- Round lot
- A trading order typically of 100 shares of a stock or some multiple of 100. Related: odd lot.
- Round-trip trade
- The purchase and sale of a security within a short period of time.
- Round-trip transactions costs
- Costs of completing a transaction, including commissions, market impact costs, and taxes.
- Procedure by which the long or short position of an individual is offset by an opposite transaction or by accepting or making delivery of the actual financial instrument or physical commodity.
- Payment for the right to use intellectual property or natural resources.
- Rubber check
- A check that bounces for lack of funds.
- R square (R2)
- Square of the correlation coefficient. The proportion of the variability in one series that can be explained by the variability of one or more other series a regression model. A measure of the quality of fit. 100% R-square means perfect predictability.
- Rule 13-d
- Often used in risk arbitrage. Requirement under Section 13-d of the Securities
Act of 1934 that a form must be filed with the SEC within ten business days
of acquiring direct or beneficial
ownership of 5% or more of any class of
equity securities in a publicly held corporation. The purchaser of such stock
must also file a 13-d with the stock
exchange on which the shares are listed
(if any) and the company itself. Required information includes the way the
shares were acquired, the purchaser's background, and future plans regarding
the target company. The law is designed
to protect against insidious takeover attempts
and to keep the investing public aware of information that could affect the
price of their stock. See: Williams Act.
- Rule 14-d
- Often used in risk arbitrage. Regulations and restrictions covering public tender offers and related disclosure requirements.
- Rule 144
- Restricts solicitation of buyers to complete the sell order of an insider (unless the firm is already a buyer); signified by a flashing "E" on Quotron.
- Rule 144a
- SEC rule allowing qualified institutional buyers to buy and trade unregistered securities.
- Rule 405
- NYSE codification of "know your customer" rules, which require that a customer's situation is suitable for any investment being made.
- Rule 415
- Permits corporations to file a registration for securities they intend to issue in the future when market conditions are favorable. See: Shelf registration.
- Rule of Absolute Priority
- A condition of bankruptcy proceedings under which junior (subordinated) claim holders can receive no payment until senior (priority) claim holders are paid in full.
- Rule of 72
- A formula used to determine the amount of time it will take for invested money to double at a given compound interest rate, which is 72 divided by the interest rate.
- Rules of fair practice
- Rules established by the NASD that lay down guidelines for just and equitable principles of trade and business in securities markets.
- A term combining the words "rumor" and arbitrage, used to describe trading that occurs on the basis of rumors of a takeover.
- Usually used in the context of a merger or acquisition. A group of shareholders who refuse to tender their shares for a merger or acquisition. In a merger of Company A and Company B for example, if a sufficient number of Company B shareholders do not tender their shares, the new company will not be able to access the cash flows of Company B.
- A run consists of a series of bid and offer quotes for different securities or maturities. Dealers give and ask for runs from each other.
- A summary of the amount and prices of a serial bond issue that is still available for purchase.
- Running ahead
- The illegal practice of trading in a security for a broker's personal account before placing an order for the same security for a customer.
- Used for listed equity securities. Series of trades printed on the ticker tape that occur on the NYSE before 4:00 p.m., but are not reported until afterwards due to heavy trading that makes the tape late.
- Russell Indexes
- US equity index widely used by pension
and mutual fund investors
that are weighted by market capitalization
and published by the Frank Russell Company of Tacoma, Washington. For example,
the Russell 3000 index includes the 3,000
largest US companies according to market capitalization.
- Russell 1000
- A market capitalization-weighted
made up of the 1000 highest-ranking US stocks
in the Russell 3000.
- Russell 2000
- A market capitalization-weighted
made up of the 2000 smallest US companies in the Russell
- Russell 3000
- A market capitalization-weighted
made up of the 3000 largest US stocks, which
represent about 98% of the US equity market.
- Russian Trading System (RTS)
- An electronic system in Russia, like the Nasdaq system on which the majority of Russian equities trading is conducted.
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Compiled by Campbell R. Harvey, J. Paul Sticht Professor of
International Business, Fuqua School of Business at Duke University.