Glossary

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Raiders

    Investors who attempt to acquire other firms in an unfriendly takeover.
Rally
    An increase in the price of a stock or the level of the market.
Rating Agency
    Companies that rate the likelihood of a firm to default on its debt obligations.
Real Assets
    Tangible assets include: plant and equipment; intangible include: technical expertise, trademarks & patents.
Real Interest Rate
    Interest Rate that is adjusted for inflation.
Record Date
    Date set by the company when dividends are declared. Owners who are registered on this date receive dividends.
Red Herring
    A preliminary prospectus.
Refunding
    Replacement of existing debt with a new issue of debt.
Regression Analysis
    A statistical technique for fitting best line through data.
Regular Dividend
    Dividend that is expected to be maintained at regular time intervals.
Reorganization
    Financial restructuring of a firm under bankruptcy. Both the firm's assets and its financial structure are modified.
Repo (Repurchase Agreement)
    Purchase of Treasury securities from a securities dealer with an agreement that the dealer will repurchase them at a specified price.
Required Return
    Minimum return required by investors to compensate them for assuming risk.
Residual Dividend
    An approach to dividends that suggests a firm pay dividends if and only if acceptable investment opportunities for those funds are currently unavailable.
Retained Earnings
    Earnings not paid out as dividends.
Risk Premium
    Additional return, over the risk-free rate, to compensate investors for accepting (holding) risk.
Risk Aversion
    The dislike of risk. For risk averse investors, the pain from losing $1 is greater than the pleasure of winning $1. Thus, such investors have to be compensated with additional return to induce them to hold risky assets.
Round Lot
    The purchase or sale of a quantity of stocks that is in multiples of 100, such as 200, 1,000, etc.
Russell 2000
    An equity index comprising 2000 mid-capitalization U.S. listed stocks.