Datasets:
sohomghosh
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FinRAD_Financial_Readability_Assessment_Dataset

Dataset card Data Studio Files Community
1
terms
stringlengths
1
156
definitions
stringlengths
3
4.2k
source
stringclasses
15 values
assigned_readability
int64
0
1
flesch_reading_ease
float64
-301.79
121
flesch_kincaid_grade
float64
-3.5
55.6
smog_index
float64
0
26.5
coleman_liau_index
float64
-33.81
51.4
automated_readability_index
float64
-6.9
65
dale_chall_readability_score
float64
0.1
35.3
linsear_write_formula
float64
-0.5
73
gunning_fog
float64
0.4
56
RECOVERY
The amount received by CREDITORS after BANKRUPTCY pro- ceedings have concluded, typically related to the SENIORITY of the CLAIM
palgrave
0
26.81
14.2
0
15.37
15.1
12.89
15.5
20.23
RECOVERY RATE
The percentage of an OBLIGATION or CLAIM recovered by a CREDITOR following a defaulted DEBTOR’s BANKRUPTCY proceedings. See also LOSS-GIVEN DEFAULT, RECOVERY.
palgrave
0
26.47
12.3
0
16.63
13.4
12.08
10.5
18.95
RED HERRING
In the United States, a preliminary REGISTRATION STATEMENT, filed by a company with the SECURITIES AND EXCHANGE COMMISSION, related to a forthcoming NEW ISSUE of SECURITIES. The red herring contains no price or issue size details, and is updated regularly until it becomes the final PROSPECTUS. The document derives its name from the red ink that is used to warn that the circular is not an attempt to sell securities in advance of registration statement approval. Also known as PATHFINDER PROSPECTUS.
palgrave
0
42.41
12.4
13.8
12.3
13.2
9.32
13.625
13.06
RED-LINING
Refusal by a BANK to provide funds, or an INSURER to supply INSURANCE cover, in particular areas or sectors as a result of previous negative experiences and/or losses. Red-lining that is discriminatory or preju- dicial is illegal in many jurisdictions.
palgrave
0
25.8
14.6
0
12.59
13.7
12.52
14.5
17
REDEEMABLE BOND
See CALLABLE BOND.
palgrave
0
119.19
-2.7
0
3.43
5.2
14.31
0.5
1.2
REDEMPTION
The process of paying off and extinguishing an issue of SECURITIES as per the terms stated in the OFFERING DOCUMENT or PROSPECTUS, or otherwise reflected on the SCRIP.
palgrave
0
43.06
14.2
0
11.61
16.1
12.36
20
18.34
REDEMPTION DATE
The date on which an issue of SECURITIES can be paid off by the ISSUER, or the specific MATURITY DATE of the issue.
palgrave
0
56.59
11.1
0
5.98
9.1
8.21
14.5
14.42
REDEMPTION PRICE
See CALL PRICE, PUT PRICE.
palgrave
0
117.16
-1.9
0
1.48
1.8
0.25
1.5
2
REDEMPTION VALUE
The value or price at which a SECURITY will be redeemed at MATURITY.
palgrave
0
58.28
8.4
0
6.37
5.4
7.93
7.5
11.35
REDISCOUNTING
The process of discounting a NEGOTIABLE INSTRUMENT a second time, e.g., a BANK first DISCOUNTS a BILL OF EXCHANGE, and a CENTRAL BANK then rediscounts the bank’s discounted bill when presented. Each act of rediscounting implicitly reflects a charge taken for the obligor’sCREDIT RISK.
palgrave
0
49.15
11.9
0
13.58
15.4
10.83
15.5
16.98
REFERENCE CREDIT
See REFERENCE ENTITY.
palgrave
0
9.21
12.7
0
9.23
9.9
14.31
2.5
27.87
REFERENCE ENTITY
The ISSUER to whose DEFAULT a CREDIT DERIVATIVE CONTRACT refers. Default on any of the issuer’s DEBT obligations will triggera payout under the credit derivative contract. Also known as REFERENCE CREDIT. See also REFERENCE OBLIGATION.
palgrave
0
45.62
9.1
10.1
13.42
9.8
9.94
4.875
8.09
REFERENCE INDEX
An INDEX that is used as the pricing indica- tor in a DERIVATIVE transaction, such as those related to EQUITIES orCOMMODITIES.
palgrave
0
33.24
13.8
0
11.14
12.9
11.45
16.5
19.83
REFERENCE OBLIGATION
The specific DEBT obligation of an ISSUER to whose DEFAULT a CREDIT DERIVATIVE CONTRACT refers. In order to trigger a payout under the credit derivative contract the specific obligation must be in default. See also REFERENCE ENTITY.
palgrave
0
42.07
10.4
12.5
12.11
9.7
9.79
7.833333
10.33
REFERENCE RATE
An INTEREST RATE that is used as the pricing indicator in a financing or DERIVATIVE transaction. In most cases the reference rate is a well-established and transparent BENCHMARK, such as LIBOR, EURIBOR, EONIA, PRIME RATE, and so forth.
palgrave
0
52.19
10.7
0
11.72
12.6
10.81
13.5
17.07
REFINANCING
The process of renewing an existing financing facility, such as a LOAN. Refinancing is common amongst BORROWERS when INTEREST RATES decline and the cost savings of repaying and renewing an existing facility are greater than the fees payable for a new financing. Refinancing may also occur at the original MATURITY of an existing facility as a form of extension or ROLLOVER.
palgrave
0
33.95
13.6
17.1
12.13
12.9
10.08
16.166667
15.33
REFINANCING RISK
See REPRICING RISK.
palgrave
0
93.81
0.9
0
5.35
6.8
14.31
0.5
1.2
REFLATION
An act of stimulating an ECONOMY, generally through an increase in MONEY SUPPLY and/or a reduction in TAXES. See also DEFLATION, INFLATION.
palgrave
0
34.93
11.1
0
11.35
9.3
10.64
7.5
15.31
REFUNDING
A process where the ISSUER of a BOND repays INVESTORS at a predefined REDEMPTION price. Refunding can only occur when a bond issue is CALLABLE, and is generally arranged in a declining INTEREST RATE envir- onment, when a NEW ISSUE of cheaper bonds can be floated to replace the refunded bonds. See also PROTECTION.
palgrave
0
53.21
10.3
12.5
9.8
10.3
11.25
11.666667
13.13
REFUNDING PROTECTION
A clause in an INDENTURE that prohibits an ISSUER from redeeming a BOND for a stated period of time from proceeds of an issue floated at a lower cost and ranking equal, or senior, to the original bond. See also REFUNDING.
palgrave
0
59.13
10.1
0
7.78
9.6
10.82
12.75
13.08
REGIONAL BANK
In certain countries, a BANK that operates primarily out- side of the main money centers, focusing its activities on one or more states in a single region or on a specific locality. Regional banks are common in coun- tries such as the United States and Japan. See also MONEY CENTER BANK.
palgrave
0
62.68
8.7
11.9
8.58
9
9.43
10.833333
12.29
REGIONAL EXCHANGE
In certain countries, an EXCHANGE that serves as an additional exchange in the local marketplace fulfilling a specific func- tion for listing and trading but not holding dominant market shares. Regional exchanges exist for both STOCKS and COMMODITIES.
palgrave
0
43.73
11.9
0
14.79
14.6
12.47
13
14.97
REGISTERED CAPITAL
See AUTHORIZED CAPITAL.
palgrave
0
9.21
12.7
0
13.12
13
9.05
2.5
14.53
REGISTERED OFFICE
The official address of a REGISTERED COMPANY.
palgrave
0
30.53
10.7
0
11.55
8.3
8.5
5.5
14.23
REGISTERED SECURITY
Any NEW ISSUE of SECURITIES that must adhere to requirements set forth by a national REGULATOR prior to FLOTATION, listing, and TRADING. Registered securities must generally be supported by a detailed REGISTRATION STATEMENT that provides information on the pro- posed issue of securities and the ISSUER. See also BEARER SECURITY, PRIVATE PLACEMENT.
palgrave
0
28.54
13.6
14.6
14.79
14.1
12.09
12.666667
14.61
REGISTRAR
A party that is appointed to maintain the registry of SHAREHOLDERS of a given company. BANKS and TRUST companies often ful- fill the role of registrar.EXEMPT SECURITY, PROSPECTUS, RED HERRING.
palgrave
0
47.79
10.3
0
12.46
11.6
11.22
10.5
12.67
REGRESSION
See ANALYSIS.
palgrave
0
-6.7
14.7
0
1.3
7.8
11.63
1
20.8
REGRESSION ANALYSIS
A statistical process that seeks to determine the relationship between a dependent variable (regressand) and one or more independent variables (regressors). Regression may be computed on a linear or nonlinear basis. The general form of the simple linear equation is given as:yi = βo + β1xi + εi , for i = 1 to N data pointswhere y is the dependent variable, x is the independent variable, β is the regres- sion parameter, ε is the residual or error term. Also known as REGRESSION.
palgrave
0
42.92
12.2
14.6
10.56
12.1
11.61
14.5
14
REGRESSIVE TAX
A TAX scheme which directly or indirectly places a greater burden on lower income households (relative to resources) by reducing the tax rate as the amount subject to taxation increases. Sales taxes and sin taxes (e.g., extra levies on tobacco and alcohol) are considered regressive taxes. See alsoPROGRESSIVE TAX, PROPORTIONAL TAX.
palgrave
0
45.76
11.1
14.6
13.22
13.1
11.6
12.5
15.43
REGULATION
A series of rules, restriction, controls, and oversight imposed on markets, industry sectors, and/or individual institutions by a government authority in an effort to ensure proper protections within the marketplace and fair treatment of individuals and competitors. See also DE, REGULATOR.
palgrave
0
16.83
16
0
16.82
17.6
13.13
15.75
17.96
REGULATION FAIR DISCLOSURE
In the United States, a SECURITIES AND EXCHANGE COMMISSION rule that requires a company to issue sensitive information to the public broadly rather than selectively. The rule eliminates the information access privileges often granted to research analysts of BANKS, INVESTMENT BANKS, and SECURITIES FIRMS.
palgrave
0
23.77
15.4
0
16.48
17.5
10.83
17
16.98
REGULATION NMS
In the United States, Regulation National Market System (NMS) put forth by the SECURITIES AND EXCHANGE COMMISSION, which seeks to consolidate and strengthen the framework for TRADING and EXECUTION on a variety of EXCHANGES and electronic platforms. The key elements of the regulation focus on ORDER protection (via TRADE-THROUGH and PROTECTED BIDS and OFFERS), order access, pricing increments, and market data/information display.
palgrave
0
23.09
17.7
0
16.72
22.2
12.56
22.5
20.79
REGULATION T
In the United States, a FEDERAL RESERVE BOARD REGULA- TION related to extensions of CREDIT by BROKER/DEALERS and SECURITIES FIRMS to their clients. Regulation T LOANS must be secured by MARGIN com- prised of ELIGIBLE SECURITIES and capped at certain LOAN-TO-VALUE levels; minimum margin levels must be maintained and supplemented as necessary through the MAINTENANCE MARGIN process. See also NONPURPOSE LOAN,PURPOSE LOAN.
palgrave
0
33.54
13.7
16.3
15.37
16.3
12.3
15.666667
16.02
REGULATOR
A government body that is responsible for overseeing the activ- ities of particular companies or markets, and for establishing minimum stand- ards of conduct. Certain industries, such as BANKING, may feature multiple regulators, one of which may emerge as the primary regulator. Regulated com- panies operating in multiple countries may also be subject to regulation by each national authority.
palgrave
0
26.1
14.5
17.1
14.79
15.2
11.84
15.833333
18.73
REGULATORY ARBITRAGE
The process of taking advantage of internal or external differences in the regulatory treatment of business activities in order to decrease regulatory costs or expand into products or markets nor- mally off limits. See also REGULATORY CONSOLIDATION, REGULATORY HARMONIZATION.
palgrave
0
0.92
18
0
17.35
17
11.49
15.25
16.01
REGULATORY CAPITAL
CAPITAL resources that financial institutions must allocate to their FINANCIAL RISKS in order to comply with applicable national regulatory requirements. REGULATORS often establish minimum thresholds to ensure SOLVENCY under a range of stress loss scenarios. See also ECONOMIC CAPITAL, RISK-ADJUSTED CAPITAL, TIER 1 CAPITAL, TIER 2 CAPITAL.
palgrave
0
13.24
15.3
17.9
17.86
15.9
12.81
14.5
18.19
REGULATORY COMPLIANCE RISK
The RISK of loss arising from failure to comply with regulatory rules related to business, TRADING, LENDING, author- ized dealing personnel, reporting, disclosure, or capitalization. A subcategory of OPERATIONAL RISK.
palgrave
0
22.41
13.9
0
16.75
15.6
13.33
11.5
16.67
REGULATORY FORBEARANCE
A decision by a national REGULATOR or authority not to enforce a specific regulation, generally to avoid destabilizing or aggravating an unstable market or situation.
palgrave
0
-4.67
20.1
0
15.5
17.8
13.09
23.5
27.6
REGULATORY HARMONIZATION
The process of ensuring that rules for business and financial activities are generally similar across countries in order to reduce instances of cross-border REGULATORY ARBITRAGE. See alsoREGULATORY CONSOLIDATION.
palgrave
0
6.5
15.8
0
19.83
16.7
12.79
12
18.46
REHYPOTHECATION
The act of pledging COLLATERAL taken in a lend- ing or SECURITIES FINANCING transaction to secure additional collateralized financing.
palgrave
0
1.43
17.8
0
17.52
16.8
12.06
16.5
20.23
REINSTATEMENT
The reactivation of an INSURANCE CONTRACT that has lapsed due to nonpayment of PREMIUM by the INSURED. In reinstating a con- tract an INSURER reserves the right to charge a higher PREMIUM or modify coverage terms.
palgrave
0
44.75
11.5
0
10.61
10.8
11.55
13.5
16.09
REINSURANCE
A RISK TRANSFER from an INSURER to a REINSURER that provides an insurer with cover for specified INSURANCE exposures. The agree- ment may be arranged as FACULTATIVE (i.e., customized, one- off) or TREATY (i.e., standardized, multiple exposure).
palgrave
0
35.78
12.9
0
12.82
14.3
11.81
14.75
18.21
REINSURANCE BROKER
A BROKER representing the CEDING INSURER in placing business with a REINSURER.
palgrave
0
33.92
11.5
0
13.73
10.9
12.13
8
14.8
REINSURANCE CAPACITY
(1) The amount of REINSURANCE available to INSURERS from the reinsurance market at large or from an individual REINSURER. (2) The amount of PREMIUM that an individual reinsurer is able to write for specific types of RISKS.
palgrave
0
33.92
17.7
0
11.5
20.8
10.17
27.5
21.29
REINSURANCE CREDIT
A CREDIT balance on a CEDING INSURER’s BALANCE SHEET that reflects PREMIUMS CEDED to, and losses recoverablefrom, REINSURERS. The credit balance, which is a reflection of RISK TRANSFER, permits an insurer to write additional primary INSURANCE coverage forINSUREDS.
palgrave
0
26.81
14.2
0
16.48
16.2
12.89
14.5
18.13
REINSURANCE POOL
A group of REINSURERS that agrees to UNDERWRITE RISKS on a joint basis; under a typical POOL each member agrees to pay a fixed percentage of any loss, or a percentage of any loss above a defined RETENTION level. Also known as REINSURANCE FACILITY.
palgrave
0
57.61
10.7
0
9.11
11.4
9.39
15
15.16
REINSURANCE SIDECAR
A form of REINSURANCE developed in response to the need for additional UNDERWRITING CAPACITY in the face of specific catastrophes. The sidecar functions in a manner similar to traditional QUOTA SHARE, except that its CAPITAL is raised privately, it supports a single CEDANT, and has a finite life (generally less than 2 years).
palgrave
0
36.12
14.8
0
12.36
16.3
11.51
19.25
18.9
REINSURED
An INSURER that CEDES a particular RISK to a REINSURER through a REINSURANCE agreement.
palgrave
0
48.81
9.9
0
12.35
10.5
12.23
11
17.03
REINSURER
An INSURER that provides REINSURANCE coverage to other insurers through FACULTATIVE REINSURANCE or TREATY REINSURANCE agreements.
palgrave
0
12.94
15.4
0
23.37
20.2
12.33
15
18.9
REINVESTMENT RATE
The INTEREST RATE at which CAPITAL can be reinvested as it is earned and once existing INVESTMENTS mature. See alsoREPRICING RISK.
palgrave
0
60.82
7.4
0
11.05
8.5
10.17
7.25
13.72
REINVESTMENT RISK
See REPRICING RISK.
palgrave
0
93.81
0.9
0
5.35
6.8
14.31
0.5
1.2
RELATED PARTY
Any party (individual or corporate) that is in some way associated with a second party. In a corporate context this relates to the rela- tionship between HOLDING COMPANIES, PARENT companies, SUBSIDIARIES, AFFILIATES, and/or JOINT VENTURES.
palgrave
0
28.33
13.7
0
14.73
14.9
10.37
12.25
12.71
RELATED-PARTY TRANSACTION
A financial transaction conducted between a company and a related entity, such as a PARENT, HOLDING COMPANY, SUBSIDIARY, AFFILIATE, JOINT VENTURE, or SPECIAL PURPOSE ENTITY. Common related-party transactions include paying or receiving DIVIDENDS, accepting or granting LOANS, HEDGING RISKS, and transfer- ring CAPITAL.
palgrave
0
7.35
17.6
0
18.22
19.6
13.52
18.25
17.9
RELATIONSHIP MODEL
A general corporate system that is characterized by concentrated ownership stakes and cross-SHAREHOLDINGS, LIQUIDCAPITAL MARKETS, and a relatively inactive CORPORATE CONTROL MARKET; formal legal dealings are often supplemented by informal negoti- ation arising from long-term business relationships. Germany and Japan are representative examples of the relationship model. See also HYBRID MODEL, MARKET MODEL.
palgrave
0
11.21
16.1
16.3
20.41
19.2
12.86
14.166667
17.65
RELATIVE VALUE ARBITRAGE
A general ARBITRAGE strategy where an INVESTOR or HEDGE FUND manager can establish arbitrage positions in any one of several different, and often unrelated, ASSET classes. As with other arbi- trage strategies, the fundamental goal is to identify price discrepancies which can be converted into profits and to monetize them through a combination of unleveraged or LEVERAGED LONG and SHORT positions.
palgrave
0
23.6
17.5
0
14.86
19.9
10.84
24.25
20.07
RELIEF RALLY
A RALLY in the broader market that comes after a significant sell-off or BEARISH phase. The rally may be short-lived if fundamental and technical factors have not actually changed.
palgrave
0
48.3
10.1
0
11.71
10.5
10.89
8.25
11.32
REMIC
See REAL ESTATE MORTGAGE INVESTMENT CONDUIT.
palgrave
0
31.55
10.4
0
15.88
12.2
14.46
3
9.07
REMITTING BANK
See COLLECTING BANK.
palgrave
0
59.97
5.6
0
7.32
8.3
9.05
1.5
14.53
RENT
A periodic payment made by a renting party to a property owner for the use of residential or commercial property.
palgrave
0
34.26
13.5
0
9.69
10.7
8.58
15
16
RENT-A-CAPTIVE
A licensed INSURER or REINSURER that makes an account available to a firm that wishes to SELF-INSURE but does not want to administer its own CAPTIVE program. A rent-a-captive prevents account commingling by segregating ASSETS, LIABILITIES, and RISK exposures into individual accounts that are separated through a SHAREHOLDER’S agreement. See also AGENCYCAPTIVE, CAPTIVE, GROUP CAPTIVE, PROTECTED CELL COMPANY, PURE CAPTIVE, SENIOR CAPTIVE, SISTER CAPTIVE.
palgrave
0
24.48
15.1
15.9
17
18.1
11.11
15.666667
16.02
RENT RIGHT
The financial benefit granted to an INVESTOR throughaSHARE of COMMON STOCK, comprised of a PRO-RATA share of the dis- counted future CASH FLOWS of the company (which manifests itself via share price appreciation) and any periodic DIVIDENDS that might be paid. See alsoCONTROL RIGHT.
palgrave
0
40.69
13.1
0
13.29
15.1
11.55
15.5
15.16
RENTES
[FR] In France, a PERPETUAL BOND issued by the government which pays a FIXED RATE of INTEREST.
palgrave
0
62.68
8.7
0
7.65
8.7
11.91
11.5
11.51
REOPENING
A SECONDARY OFFERING of a new TRANCHE of SECURITIES under an existing issue with a defined COUPON and MATURITY. Frequent ISSUERS often use reopenings in order to concentrate LIQUIDITY in a smaller number of issues and establish more robust BENCHMARKS.
palgrave
0
34.26
13.5
0
13.17
13.5
12.13
14
16
REPACKAGING
The process of converting an existing SECURITY into an alternate form through the use of DERIVATIVES or other financial instruments. The intent is to create a new ASSET or LIABILITY with a different PAYOFF or funding profile.
palgrave
0
35.78
12.9
0
12.01
11.9
10.96
13.75
16.05
REPATRIATION
The return of an individual or CAPITAL from an overseas locale back to a home country.
palgrave
0
55.24
9.5
0
7.83
7.5
7.39
9
8.9
REPLACEMENT COST
(1) In ACCOUNTING, the amount required to replace an ASSET based on its BOOK VALUE, accumulated DEPRECIATION, and obsoles- cence. In some cases replacement cost requires subjective input and judgment, particularly if the asset has become obsolete. (2) See ACTUAL EXPOSURE.
palgrave
0
25.29
14.8
0
13.87
15.5
12.74
14.75
16.98
REPLICATION
The process of duplicating an INDEX, HEDGE, or INVEST- MENT strategy through physical ASSETS or DERIVATIVE CONTRACTS.
palgrave
0
37.3
12.3
0
15.54
15
14.7
12.5
16.21
REPO
See REPURCHASE AGREEMENT.
palgrave
0
34.59
9.2
0
16.95
16.2
14.31
1.5
14.53
REPO RATE
The INTEREST RATE a BORROWER pays a LENDER in a REPURCHASE AGREEMENT transaction. The repo rate, which is set accordingto the specific terms of the transaction (including MATURITY and underlying COLLATERAL), is generally lower than equivalent unsecured CREDIT from a BANK since the exposure is secured by collateral.
palgrave
0
21.74
16.2
0
14.8
16.9
12.06
20
21.27
REPRICING RISK
The RISK that a maturing ASSET or LIABILITY will be rein- vested or refinanced at a less favorable rate. Assets that reprice in a lower-rate environment and liabilities that reprice in a higher-rate environment create an opportunity cost or loss. Also known as REFINANCING RISK, REINVESTMENT RISK. See also NEGATIVE GAP, POSITIVE GAP, RATE-SENSITIVE ASSETS, RATE-SENSITIVE LIABILITIES.
palgrave
0
31.58
12.4
14.9
14.26
12.9
10.44
11.375
14.14
REPUDIATION
The act of abrogating, or refusing to perform legal require- ments under, a CONTRACT.
palgrave
0
48.81
9.9
0
10.32
9.8
12.23
8
11.31
REPUTATIONAL RISK
The RISK a company faces in negative publicity or damage to its public image, resulting in a negative impact on its ability to con- duct business. Reputational risk is often classified as a form of OPERATIONAL RISK.
palgrave
0
35.78
12.9
0
10.15
10.6
10.1
13.75
14.97
REQUEST FOR PROPOSAL (RFP)
An invitation given by a company to sup- pliers of goods/services to submit a bid for the provision of such goods/services based on specific parameters specified by the company.
palgrave
0
33.58
15.8
0
12.31
17.3
10.52
21.5
18.5
RESALE
See REVERSE REPURCHASE AGREEMENT.
palgrave
0
33.58
9.6
0
18.85
15.9
15.68
2
11.6
RESCHEDULING
Negotiation between a CREDITOR and a DEBTOR on an existing LOAN with new terms and conditions, including those that may be more favorable to the debtor, in order to avoid any instance of nonaccrual or FORECLOSURE. Also known as DEBT RESTRUCTURING. See also DEBT FORGIVENESS, RENEGOTIATED LOAN, RESTRUCTURING.
palgrave
0
46.78
10.7
14.6
13.11
12.2
9.69
12
15.57
RESCISSION
The cancellation of a CONTRACT by mutual agreement or court order, which returns the parties to their positions prior to the commencement of the contract.
palgrave
0
46.1
13
0
12.71
15.6
10.56
16.5
16.4
RESERVE ASSETS
(1) Any ASSETS that are available to a country for finan- cing BALANCE OF PAYMENTS imbalances and for intervening in the FOREIGN EXCHANGE markets. (2) Funds held by a BANK with a CENTRAL BANK.
palgrave
0
53.89
14.2
0
9.24
17.6
11.82
19
15.95
RESERVE CURRENCY
A CURRENCY featuring full CURRENCY CONVERTIBILITY on the CURRENT ACCOUNT and CAPITAL ACCOUNT, and which is widely used in international TRADE, finance, and FOREIGN EXCHANGE transactions. Reserve currencies are typically associated with national economies that have strong industrial bases and low INFLATION rates. Dollars, EURO, sterling, and yen are examples of reserve currencies. Also known as HARD CURRENCY. See also CONVERTIBLE CURRENCY, EXOTIC CURRENCY.
palgrave
0
24.64
13
14.6
16.63
14.1
10.69
10.4
13.87
RESERVE ORDER
An ORDER on an EXCHANGE that is only partially visible in the exchange’s order book – the balance remains hidden, and is only fed into the order book as executions take place. Reserve orders are a form of DARK LIQUIDITY. Also known as ICEBERG. See also HIDDEN ORDER.
palgrave
0
59.3
8
8.8
7.7
6
7.52
6
8.13
RESERVE REQUIREMENTS
A minimum percentage of total ASSETS that FINANCIAL INSTITUTIONS must hold in highly LIQUID form to ensure suffi- cient ability to meet DEPOSITS or other demand LIABILITIES as they mature or are presented for repayment. In addition to reinforcing LIQUIDITY, CENTRAL BANKS and monetary authorities often use reserve requirements as a tool ofMONETARY POLICY.systems ACCOUNTING rules control the establishment and release of reserves so that firms cannot use them to manipulate their EARNINGS.
palgrave
0
9.05
21.1
0
16.14
23.8
13.88
27.75
25.01
RESET OPTION
See PARTIAL LOOKBACK OPTION.
palgrave
0
50.5
7.2
0
11.6
10
15.68
1
1.6
RESIDUAL
See SECURITY.
palgrave
0
-49
20.6
0
1.3
7.8
11.63
1
20.8
RESIDUAL INCOME
(1) INCOME earned from intellectual property, such as royalties. (2) Income earned over and above some RISK-FREE RATE or min- imum HURDLE RATE.
palgrave
0
56.59
11.1
0
11.26
14.8
11.64
14.5
14.42
RESIDUAL RIGHT
Discretionary powers and authorities delegated by DIRECTORS to EXECUTIVE MANAGEMENT, allowing executives to act as AGENTS and make decisions related to the daily management of the firm, including financing plans, ACQUISITIONS, INVESTMENTS, production and marketing, and employee matters.
palgrave
0
-17.86
25.2
0
20.37
28.6
14.66
37
33.09
RESIDUAL RISK
See BASIS RISK.
palgrave
0
93.81
0.9
0
-2.38
0.5
14.31
0.5
1.2
RESIDUAL VALUE
The anticipated value of an ASSET at the conclusion of a LEASE; value may be determined by prior agreement or through an inde- pendent appraisal at the conclusion of a LEASE or at the end of the asset’s useful life. Also known as DISPOSAL VALUE. See also NET , GUARANTEE, SECURITIZATION, SALVAGE VALUE.
palgrave
0
45.46
11.2
11.9
9.39
9.9
9.05
11.166667
11.54
RESIDUAL VALUE GUARANTEE
A contingent FINANCIAL GUARANTEE that provides a company with a CAPITAL infusion if it experiences a shortfall in the RESIDUAL VALUE of ASSETS that have been LEASED. See also RESIDUAL VALUE SECURITIZATION.
palgrave
0
29.86
13.1
0
13.63
12.2
9.86
13
15.15
RESIDUAL VARIANCE
ASSET RETURNS that deviate from the SECURITY MARKET LINE or a SECURITY/PORTFOLIO relationship. Residual variance can be computed via:εj,t = rj,t – (A + βj (rm,t))where rj,t is the return on security j at time t, rm,t is the return on the market portfolio at time t, βj is the BETA of security j, and A is the intercept of the security market line or security/portfolio relationship. See also ARBITRAGE PRICING THEORY, CAPITAL ASSET PRICING MODEL, CAPITAL MARKET LINE.
palgrave
0
20.01
16.9
16.7
10.68
15.2
9.63
18.833333
14.96
RESISTANCE LEVEL
A TECHNICAL ANALYSIS charting figure of a SECURITY or INDEX price level that withstands repeated bouts of buying pres- sure. If the price manages to breach the resistance level after several repeated attempts, further upward moves may follow (as in a BREAKOUT).See also SUPPORT LEVEL.
palgrave
0
40.18
13.2
0
13.06
14.9
10.72
15.25
13.44
RESOLUTION
A motion that is adopted by a specific body, such as a group of SHAREHOLDERS during the ANNUAL GENERAL MEETING of a company, typically through a majority vote in the affirmative. Once approved, it becomes part of the governing operations of a company.
palgrave
0
41.19
12.9
0
10.21
12.2
9.11
16.25
16.04
RESTITUTION
(1) Compensation that is paid to a party that has sustained loss or injury by one who is responsible for causing the loss or injury, exclud- ing noneconomic damages. (2) A refund of MONEY or property that belongs rightfully to another.
palgrave
0
29.86
19.3
0
10.06
21.5
11.45
26.5
21.28
RESTORATION PREMIUM
The PREMIUM paid by an INSURED to an INSURER to restore an INSURANCE POLICY to its previous limits after a loss has occurred and a SETTLEMENT has been received.
palgrave
0
42.04
14.6
0
9.53
14.5
10.52
20.5
18.5
RESTRICTED STOCK
SHARES of a company’s COMMON STOCK granted to executives and employees as a form of compensation, and which generally vest over a multiyear period; awards may also be granted in the form of CALLOPTIONS. Restricted stock grants result in the creation of new shares and are thus dilutive.
palgrave
0
47.12
12.7
0
11.44
14
11.08
17
17.93
RESTRICTIVE ENDORSEMENT
An ENDORSEMENT on a BILL OF EXCHANGE that limits the ability of the bill to be further negotiated or transferred.
palgrave
0
51.18
11.1
0
9.69
10.7
8.58
13
14
RESTRUCTURING
The process of adjusting the LIABILITIES of a company in order to reduce the possibility of further FINANCIAL DISTRESS and/or to avoid BANKRUPTCY. A restructuring, which may involve a WAIVER, defer- ral, RESCHEDULING, STANDSTILL AGREEMENT, or exchange of liabilities, generally leaves CREDITORS with less value and/or more CREDIT RISK, and the company with a more manageable DEBT burden. Also known as DEBT . See also DEBT FORGIVENESS.
palgrave
0
37.81
12.1
13.4
13.63
13.1
10.68
11.625
12.66
RETAIL BANKING
An element of BANKING focused on providing ser- vices to individual customers, primarily through CHECKING ACCOUNTS, DEPOSITS, SAVINGS ACCOUNTS, consumer LOANS, CREDIT CARDS, andMORTGAGES.
palgrave
0
13.28
17.4
0
20.72
22.7
16.01
17
17.93
RETAIL INVESTOR
An individual INVESTOR that generally transacts in relatively small amounts, and in simple (though not riskless) financial prod- ucts. See also INSTITUTIONAL INVESTOR.
palgrave
0
25.96
12.5
0
16.57
14
11.76
7.25
13.3
RETAINED EARNINGS
The portion of a company’s EQUITY CAPITAL account comprised of net EARNINGS generated and kept within the business, after all DIVIDENDS have been paid to COMMON STOCK and PREFERRED STOCK INVESTORS. See also RETAINED PROFITS. Also known as EARNED SURPLUS, EARNINGS RETAINED, UNDISTRIBUTED EARNINGS. See alsoPAID-IN CAPITAL.
palgrave
0
51.04
9.1
10.7
14.6
12.1
9.93
6.625
8.98
RETAINED PROFITS
In the United Kingdom, RETAINED EARNINGS.
palgrave
0
56.93
6.8
0
12.05
9.8
9.2
2
2.4
RETENTION
(1) Any RISK preserved, knowingly or unknowingly, by an indi- vidual or an institution. Unknowing retention might arise from misunderstand- ing the nature of an exposure, while knowing retention is generally the result of a conscious decision to keep a particular amount of exposure for financial or
palgrave
0
30.7
14.8
0
13.23
15.7
11.86
18.75
19.61