Author: Finance Meaning

  • Rule 415

    Rule enacted in 1982 that permits firms to file shelf registration statements….

  • Round-Turn

    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….

  • Riskless Rate Of Return

    The rate earned on a riskless asset….

  • Roll Over

    Reinvest funds received from a maturing security in a new issue of the same or a similar security….

  • 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 U.S. government….

  • Risk-Free Rate

    The rate earned on a riskless asset….

  • Risk-Free Asset

    An asset whose future return is known today with certainty….

  • 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 Lover

    A person willing to accept lower expected returns on prospects with higher amounts of risk….

  • 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 Arbitrage

    Speculation on perceived mispriced securities, usually in connection with merger and acquisition deals. Mike Donatelli, John Demasi, Frank Cohane, and Scott Lewis are all hardcore arbs. They had a huge BT/MCI position in the summer of 1997, and came out smelling like roses….

  • Rights-On

    Shares trading with rights attached to them….

  • Reverse Stock Split

    A proportionate decrease in the number of shares, but not the 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 1 share for every 3 shares owned before the […]

  • Riding The Yield Curve

    Buying long-term bonds in anticipation of capital gains as yields fall with the declining maturity of the bonds….

  • Reward-To-Volatility Ratio

    Ratio of excess return to portfolio standard deviation….