Financial Glossary: R

Rally

A suddern rise in the value of a share or market performance after a long fall.

Reaction

A reversal of a trend in the movement of share prices. For example, there will be a fall in the price of shares following a rally as everyone quickly tries to makes profits. Also known as a correction.

Redemption

The date a security, such as, a bond, preferred stock or mutual fund shares becomes repayable. This is also called the maturity date.

Redemption yield

The total return from a security, such as, a bond, if it is held to its maturity date. It reflects both the income and capital gain/loss that it will make when it matures.

Registrar

An organisation that maintains a register of the share owners and the number of shares held for a company. It also makes sure that the number of shares issued are not more than the number of shares authorised. This role is usually carried out by a bank.

Reinvestment of dividends

Refers to reinvesting dividends to buy more shares.

Repayment mortgage

A mortgage where you pay off both the capital and interest each month until you've completely repaid the loan at the end of the pre-agreed term.

Retail Prices Index (RPI)

An inflationary indicator that measures the prices of a representative sample of household goods and services. It is a general indicator which is used to measure the rise or fall in the cost of living.

Retained profits

The proportion of profits after tax that is not distributed as dividends but is reinvested in the company.

Return

The annual return on an investment expressed as a percentage of the total amount invested.

Rights issue

An offer to sell a new issue of shares by a company to its existing shareholders, usually at a price which is lower than the market price.

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