Super Finance Glossary

Finance

Over 10,000 financial glossary terms...

Browse by Letter: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Or Enter Search Term: By Author:
 Search Tips
If you want to refine these results, please use the search box.
Hint: Not sure how the word is listed? Just enter the first few letters.

Browsing by the letter "R"

Displaying next 40 results of 482
Rate Of Return
Definition: Calculated as the (value nowminus 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
Definition: Ratios that measure the profitability of a firm in relation to various measures of investment in the firm.
Rate Risk
Definition: 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.
Ratings
Definition: 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. Ratings can also be an evaluation a country's creditworthiness or ability to repay, taking into consideration its estimated percentage default rate and political risk.
Ratio Analysis
Definition: 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 Calendar Combination
Definition: A strategy consisting of a simultaneous position of a ratio calendar spread using "calls" and a similar position using puts, where the striking price of the "calls" is greater that the striking price of the "puts".
Ratio Calendar Spread
Definition: Selling more near-termoptions than longer-term ones purchased, all with the same strike; either puts or calls.
Ratio Hedge
Definition: The number of options compared to the number of futures contracts bought or sold in order to establish a hedge that is neutral or delta neutral.
Ratio Spread
Definition: Constructed with either puts or calls, the strategy consists of buying a certain amount of options and then selling a larger quantity of more out-of-the-money options.
Ratio Strategy
Definition: A strategy in which one has an unequal number of long secruities and short sercurities. Normally, it implies a preponderance of short options over either long options or long stock.
Ratio Writer
Definition: An option writer who does not own the number of shares required to cover the call options he or she writes.
Rational Expectations
Definition: 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
Definition: Materials a manufacturer converts into a finished product.
Raw Material Supply Agreement
Definition: As used in connection with project financing, an agreement to furnish a specified amount per period of a specified raw material.
RE
Definition: The two-character ISO 3166 country code for REUNION.
Reachback
Definition: 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.
Reaction
Definition: A decline in prices following an advance. Opposite of rally.
Reading The Tape
Definition: Judging the performance of stocks by monitoring changes in price as they are displayed on the ticker tape.
Real
Definition: 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.
Previous
Next