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Real Estate Investment Trust (REIT) - An investment company that invests in real estate properties and/or mortgages.

Recession - A period of general and sustained economic decline.

Registered Bond - A bond with its owner's name recorded on the issuer's books. See bearer bond and coupon bond.

Renewal Rate - The fixed rate the insurance company will pay after the initial rate period expires. Usually set annually at the end of each policy year.

Repurchase Agreement - An agreement between a buyer and seller, where the seller of debt securities, usually Treasuries, agrees to buy back the securities at a set time and price.

Return on Equity - A figure that measures the percentage a company earns on the money invested in it. The figure shows investors how effectively a company's managers invest its assets.

Return on Investments - The money you earn or lose on your investment, expressed as a percentage of your original investment.

Revocable Trust - A living trust that the creator of the trust may amend or end (revoke). See living trust and trust.

Risk - The measurable possibility of economic loss. There is risk involved if the outcome of an investment is uncertain at the time the investment is made. Although the outcome is uncertain, it is measurable.

Risk Tolerance - An investor's ability to withstand declines in the value of his/her portfolio, financially and emotionally.

"Rollover" IRA - An IRA (individual retirement account) started to receive all or part of the taxable portion of an eligible distribution from a tax-qualified retirement plan. The eligible distribution amount transferred to the IRA (together with any earnings on that amount while in the IRA) escape taxation until distributions are made from the IRA.

Round Lot - A purchase or sale of stock in a number of shares that is divisible by 100. For bonds, a round lot is normally $100,000 face value.