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Investing, Financial, Trading and Crypto Terms - Dictionary (R)

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Investing/Finance/Trading/Crypto Dictionary
Rally: A rally is a period of sustained upward movement in the price of a financial instrument, such as a stock or a commodity.
Rally (Bear Market): A rally in a bear market refers to a temporary upward movement in the price of a security or an index during a prolonged period of downward market trend.
Random walk theory: Random walk theory is a financial theory that states that the past movement or direction of a stock's price or any financial instrument has no bearing on its future movement. It suggests that stock prices change randomly and that it is impossible to consistently predict future movements based on past trends.
Range: In finance, the range refers to the difference between the highest and lowest price at which a security or commodity is traded during a given period of time.
Rate of return: Rate of return is a ratio that measures the profitability of an investment over a certain period of time, typically expressed as a percentage. It is calculated by dividing the total return by the initial investment.
Ratio spread: A ratio spread is a type of option trading strategy that involves buying and selling options in a specific ratio. The goal of this strategy is to take advantage of the difference in volatility between different options and to make a profit when the market moves in a certain direction.
Recognised investment exchanges: Recognised investment exchanges are stock exchanges that have been officially recognized by a regulatory authority as meeting certain standards for listing securities and for trading activities. These exchanges have to meet the criteria set by the regulatory authority for listing securities, trading and settlement.
Redemption yield: Redemption yield is the rate of return that an investor can expect to receive on a bond if they hold it until maturity, and it is expressed as a percentage of the bond's face value. It is calculated by taking into account the bond's coupon rate, the frequency of the coupon payments, the bond's price, and the time remaining until the bond's maturity.
REIT: A Real Estate Investment Trust (REIT) is a type of investment vehicle that owns and manages income-generating real estate properties, such as apartments, office buildings, and shopping centers. REITs are required to distribute at least 90% of their taxable income to shareholders each year, making them an attractive option for investors looking for a steady stream of income.
Reserves: Reserves refers to the amount of money that a company or government has set aside for a specific purpose, such as to pay off debt or to handle unexpected expenses. In the context of a central bank, it refers to the amount of money held by the bank as assets, which they can use to support the economy or to stabilize the financial system.
Resistance level: A resistance level is a price point at which a security or financial instrument has difficulty breaking through and moving higher. This level is often seen as a ceiling and can signal a potential reversal or consolidation in the security's price.
Retail Distribution Review (RDR): The Retail Distribution Review (RDR) is a regulatory initiative implemented by the Financial Conduct Authority (FCA) in the United Kingdom, which aimed to improve the standard of advice and services provided to retail investors and increase transparency of charges. The RDR is designed to ensure that all advisers providing advice on retail investment products meet a minimum level of qualifications and are subject to an ongoing professional development.
Return of capital: Return of capital refers to the portion of a stock's or mutual fund's return that is not from earnings or income, but from the return of an investor's original capital. This can occur when a company returns some of its cash or assets to shareholders, such as through a stock buyback or a dividend payout.
Return on equity (ROE): Return on equity (ROE) is a financial ratio that measures a company's profitability by calculating the percentage return on the money that shareholders have invested. It is calculated by dividing a company's net income by its shareholder's equity. A high ROE indicates that a company is generating a good return on the money invested by its shareholders.
Reversal: A reversal is a change in the direction of a financial instrument's price movement, such as a stock or commodity. A reversal can occur from an uptrend to a downtrend, or from a downtrend to an uptrend. This change in direction can signal a potential buying or selling opportunity for traders.
Rho: Rho is a measure of the sensitivity of an option's price to changes in interest rates. It is the rate at which the price of an option changes in relation to a 1% change in interest rates. In general, options with longer expiration dates will have a higher rho value than options with shorter expiration dates, as the longer the time to expiration, the more sensitive the option is to changes in interest rates.
Rights issue: A rights issue is a type of secondary offering in which a company offers its existing shareholders the opportunity to purchase additional shares in the company at a discounted price. Shareholders are typically given a certain number of rights for each share they own, which they can then use to purchase new shares. This helps the company raise additional capital without diluting the ownership stake of its existing shareholders.
Risk management: Risk management is the process of identifying, assessing, and prioritizing potential risks and implementing strategies to mitigate or minimize their impact on an organization or individual. This can include financial risks, operational risks, strategic risks, and compliance risks. Risk management is an ongoing process that involves monitoring and reviewing risks on an ongoing basis.
Risks: Risks refer to the potential negative impact or loss that an event or action may have on an organization or individual. Risks can include financial risks, operational risks, strategic risks, and compliance risks. Identifying and assessing risks is an important part of risk management, as it allows organizations and individuals to implement strategies to mitigate or minimize the potential impact of risks.
RNS: RNS stands for Regulatory News Service. It is a service provided by the London Stock Exchange (LSE) that allows companies listed on the LSE to disseminate important financial and regulatory information to the market in a timely manner. RNS enables companies to meet their obligations under the EU Market Abuse Regulation (MAR) and the Disclosure Guidance and Transparency Rules (DTRs) of the Financial Conduct Authority (FCA).
ROCE: ROCE stands for Return On Capital Employed. It is a financial ratio that measures a company's profitability and efficiency in generating returns from the capital it has employed. It is calculated by dividing the company's operating profit by its capital employed. A high ROCE indicates that a company is generating a good return on the capital it has invested in its business.
Rollover: In the context of trading, rollover refers to the process of extending the expiration date of a futures contract or option. This is done by closing the original contract and opening a new one with a later expiration date. Rollover is typically done when a trader wishes to maintain a position in a contract that is set to expire, but wants to avoid taking delivery of the underlying asset.
RPI: RPI stands for Retail Price Index. It is a measure of inflation in the United Kingdom, which is calculated by the Office for National Statistics (ONS). RPI measures the change in the cost of a basket of goods and services consumed by households in the UK, such as food, clothing, housing and transport. It is widely used as a benchmark for inflation and is also used to adjust interest rates and other financial products.
RSI: RSI stands for Relative Strength Index. It is a technical indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. RSI values range from 0 to 100, with values above 70 indicating overbought conditions, and values below 30 indicating oversold conditions.
Run on the pound: A situation in which a large number of people withdraw their deposits or convert their currency into a more stable currency, such as the US dollar, due to loss of confidence in the economy or the currency itself. This can lead to a decrease in the value of the currency and difficulty for banks and financial institutions to meet withdrawal demands.