Legal Dictionary

Author: Finance Meaning

  • Reward-To-Volatility Ratio

    Ratio of excess return to portfolio standard deviation….

  • 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 application but sets the note rates when the borrowers close. The lender is thus exposed to the risk of falling rates….

  • Revenue Bond

    A special obligation bond, generally issued by a municipality, intended to be retired from proceeds of operation of the public project which the bond is issued to finance. See Britt v City of Wilmington, 73 S.E.2d 289, 236 N.C. 446.

  • Return On Total Assets

    The ratio of earnings available to common stockholders to total assets….

  • 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)….

  • 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….

  • Retail Credit

    Credit granted by a firm to consumers for the purchase of goods or services. See: consumer credit….

  • Residual Risk

    Related: unsystematic risk…

  • 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….

  • Reserve Ratios

    Specified percentages of deposits, established by the Federal Reserve Board, that banks must keep in a non-interest-bearing account at one of the twelve Federal Reserve Banks….

  • Reset Frequency

    The frequency with which the floating rate changes….

  • Residual Assets

    Assets that remain after sufficient assets are dedicated to meet all senior debtholder’s claims in full….

  • Repurchase Of Stock

    Device to pay cash to firm’s shareholders that provides more preferable 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, or […]

  • Required Return

    The minimum expected return you would require to be willing to purchase the asset, that is, to make the investment….

  • Required Yield

    Generally referring to bonds, the yield required by the marketplace to match available returns for financial instruments with comparable risk….