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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.
