| Qualified
Assets |
Assets
that have been invested through a qualified
retirement plan or an individual retirement
account (IRA). Investment earnings are not subject
to income taxes until withdrawn. Examples include
funds held in a profit-sharing plan, an employee
stock ownership plan or a pension plan. |
| Qualified
Retirement Plan |
A
plan sponsored by an employer to provide retirement
benefits for employees who meet certain regulatory
requirements. The employer may deduct contributions
to the plan and the employees do not include
benefits in their taxable income until received,
usually after they retire. See Defined-benefit
plan and Defined-contribution plan. |
| Quality |
1).
In general terms, the quality of a fixed-interest
security is a measure of the reliability of
the issuer in terms of whether interest and
principal will be paid on time. See: credit
rating agency. 2). The quality of a share is
a measure of the stability of the market price,
i.e. a high-quality share will not fluctuate
widely. However, individual investors may have
other subjective preferences associated with
their opinions of quality. |
| Quarterly
Refunding |
Auctions
of Treasury notes and bonds occurring in May,
August, November, and February. |
| Quotation |
The
current bid price and the current ask price
of a security. |
| Quote |
The
highest bid and lowest offer on a given security
at a particular time. |
| R-Squared |
The
degree to which an asset's correlation with
"the market" has explained its fluctuations
over a specified period of time. Alpha and beta
coefficients are calculated using a procedure
known as "regression analysis," where points
in a system of coordinates are generated by
measuring "market" movements (the "independent
variable") along the horizontal "X" axis and
correlating them with movements in the asset
(the "dependent variable") measured along the
vertical "Y" axis. |
| Range |
The
high and low prices for the day for a security. |
| Rate
Of Return |
A
measure of the amount an investment earns, usually
expressed as an annual percentage. For example,
if an investment of $100 earns $5 in one year,
the rate of return is 5%. Frequently shortened
to the "return" on an investment. |
| Rating |
The
alphabetical designation attesting to the investment
quality of a bond. Treasury and agency securities
are AAA-rated, said to be "investment grade." |
| Registered
Certificates of Accrual on Treasury Securities
(RATS) |
Another
trade name for derivative zeros backed by U.S.
Treasury obligations. |
| Real
Estate Fund |
A
fund that invests primarily in stocks of companies
that participate in the real estate industry,
such as mortgages and real estate investment
trusts, but not real estate itself. |
| Real
Return |
The
actual return earned on an investment after
factoring in the rate of inflation. |
| Receiver's
Certificate |
A
certificate issued when a company is in financial
trouble. Its purpose is to provide the company
with funds to complete processing cycles so
that more money can be obtained through its
liquidation. |
| Record
Date |
The
date on which a shareholder must officially
own a stock's shares in order to receive a company's
declared dividend or to vote on company issues. |
| Red
Herring |
The
preliminary prospectus. The name comes from
the advisory that is printed on the face of
the prospectus in red ink. |
| Redeem |
To
cash in shares by selling them back to the mutual
fund. Mutual fund shares are redeemable on any
business day. |
| Redemption |
The
retiring of a debt instrument by paying cash. |
| Redemption
Date |
The
date on which a security (usually a fixed interest
stock), is due to be repaid by the issuer at
its full face value. The year is included in
the title of the security; the actual redemption
date is that on which the last interest is due
to be paid. |
| Redemption
Fee |
A
fee charged by some funds when shares are sold
(redeemed). |
| Redemption
Notice |
A
notice that a corporation or a municipality
is calling or redeeming a certain issue of bonds. |
| Redemption
Price |
The
price at which a mutual fund's shares are redeemed
(bought back) by the fund. The value of the
shares depends on the market value of the fund's
portfolio of securities at the time. This value
is the same as "net asset value per share."
In the newspaper, this amount is shown as the
"bid" price. |
| Refunding |
The
retiring of a debt instrument by issuing a new
debt instrument. |
| Reg
T Excess |
In
a margin account, the amount by which the loan
value exceeds the debit balance. |
| Registered
Bond |
A
bond on which the owner's name appears on the
certificate. |
| Registered
Form |
The
recording of a security's ownership on the issuer's
central ledger. Anyone delivering the security
must prove that he or she is, in fact, the person
to whom the securities are registered to. |
| Registered
to Principal Only |
A
feature of a bond whose ownership is recorded
on a central ledger and whose interest payments
are made only when coupons are detached and
cashed in. Payments are not automatically sent
to the owner. |
| Registered
Trader |
A
member of an exchange who is responsible for
adding "liquidity" to the marketplace by purchasing
or selling assigned securities from his or her
inventory. Also known as competitive market
makers or option principal members. |
| Registrar |
A
commercial bank or trust company that controls
the issuance of securities. |
| Registration
Statement |
Document
filed with the Securities and Exchange Commission
(SEC) explaining an impending issue and pertinent
data about the issuer. Based on the information
provided, the SEC either permits or prevents
the issue from being offered. |
| Regular
Way |
Settlement
on the third business day following the trade
date. |
| Regular
Way Contract |
The
first contract sheet received from NSCC that
contains compared, uncompared, and advisory
data. |
| Regular
Way Delivery |
A
type of settlement calling for delivery on the
third business day after trade dates for stocks,
corporate bonds, municipals. For government
bonds and options, delivery is the first business
day after trade. |
| Regulation
A |
A
regulation governing the issuance of new securities. |
| Regulation
T (Reg T) |
A
federal regulation that governs the lending
of money by brokerage firms to its customers. |
| Reinstatement
Privilege |
A
shareholder who redeems fund shares, and then
changes his or her mind, may have a onetime
privilege of reinstating the investment by investing
the proceeds of the redemption at net asset
value (with no sales charge). There is generally
a 30-day time limit for this service. |
| Reinvestment
Opportunity |
Ability
to reinvest interest and principal paid by income
securities. |
| Reinvestment
Rate |
Rate
of interest earned by reinvesting interest payments
rather than consuming them as current income. |
| Reinvestment
Risk |
The
prospect that securities will not be able to
pay higher rates of interest when general interest
rates rise or retain previous levels of interest
when general interest rates fall. |
| Renounceable
Documents |
Temporary
evidence of ownership, of which there are four
main types. When a company offers shares to
the public, it sends an Allotment Letter to
the successful applicants; if it makes a rights
issue, it sends a Provisional Allotment Letter
to its shareholders, or in the case of a capitalization
issue, a Renounceable Certificate. All of these
are in effect bearer securities and are valuable.
Each includes full instructions on what the
holder should do if he wishes to have the newly-issued
shares registered in his name or if he wishes
to renounce them in favor of somebody else. |
| Repurchase |
The
purchase of a security by the issuer. Normally
associated with unit trust holdings where the
units are repurchased by the managers from the
holder or gilts at maturity (see: redemption
date). See: repo. |
| Repurchase
Agreement (Repo) |
An
agreement used to finance certain government
and money market inventory positions. The brokerage
firm sells securities to the financing organization
with the agreement that the firm will repurchase
them in the short-term future. |
| Restricted
Account |
As
defined by Regulation T, a margin account in
which the debit balance exceeds the loan value. |
| Restricted
Securities |
Unregistered
securities acquired in a transaction that does
not involve a public offering. |
| Retention
Requirement |
The
amount that must be retained in a restricted
margin account if anything is to be withdrawn. |
| Retirement
Plan Income |
Income
received from a retirement plan. This does not
include earnings that accrue within a retirement
plan but are not yet distributed. |
| Revenue
Anticipation Note (RAN) |
A
short-term debt instrument that is issued by
municipalities and that is to be paid off by
future (anticipated) revenue. |
| Revenue
Bond |
A
municipal bond used to finance public works
such as bridges, tunnels, or sewers. Principal
and interest on the bond are paid directly from
the revenues of the project, such as tolls.
(Opposite: G.O., or General Obligation Bond,
which relies on the taxpayers of a municipality
to repay the debt.) |
| Right |
A
certificate showing that the stockholder has
the privilege of purchasing new securities in
proportion to the number of shares he owns before
the general public. |
| Right
Of Accumulation (ROA) |
A
right granted by some mutual funds that allows
a shareholder to count existing holdings of
the fund along with new purchases in determining
the size of the sales fee on the new shares.
This right applies to funds that offer discounts
on high-volume investments. Thus the fee charged
on succeeding purchases is determined by all
purchases, past and present, not just by new
purchases. |
| Rights
Arbitrage |
The
simultaneous purchase and sale of different
securities in anticipation of a merger or tender
offer. |
| Rights
Issue |
An
invitation to existing shareholders to purchase
additional shares in the company. |
| Rights
Offering |
An
offering that gives each shareholder a chance
to exercise his preemptive rights. |
| Risk |
The
unpredictability of investment returns. The
chance that the actual return from an investment
will be different from its expected return.
Investment risk is measured statistically using
standard deviation. Investment risks include
economic risk, inflation risk, interest rate
risk, market risk and specific risk. |
| Risk
Tolerance |
The
capacity to accept investment risk. This includes
psychological factors relating to your willingness
and financial factors relating to your financial
need. These factors include your willingness
to take chances, experience and understanding
of financial markets and investment risks, investment
time frame, access to other sources of income
and capital, ability to make additional investments
in the future, total value of your investment
portfolio, proportion of your total portfolio
that the particular investment represents and
the extent to which you need to maximize return
to meet specific investment goals. |
| Regulatory
News Service (RNS) |
A
service operated by the Exchange, in its role
as competent authority for listing, which ensures
that price-sensitive information from listed
and USM companies is collected and then disseminated
to all RNS subscribers at the same time. |
| Right
of Accumulation (ROA) |
A
right granted by some mutual funds that allows
a shareholder to count existing holdings of
the fund along with new purchases in determining
the size of the sales fee on the new shares.
This right applies to funds that offer discounts
on high-volume investments. Thus the fee charged
on succeeding purchases is determined by all
purchases, past and present, not just by new
purchases. |
| Rollover |
The
reinvestment of funds into another, often similar,
investment. Often used when securities are maturing,
or when moving an Individual Retirement Account |
| Roth
Ira |
An
individual retirement fund. Contributions are
not tax deductible, but withdrawals are tax
exempt if an individual has been in the plan
at least five years and is at least 59-1/2.
Income limits and additional rules apply. |
| Round
Lot |
A
standard trading unit. In common stocks, 100
shares make up a round lot. A round lot of bonds
in the over-the-counter market is 5 bonds. |
| Rule
144 |
Rule
that governs the sale of control and restricted
securities. |
| Rules
Of Fair Practice |
Part
of the NASD rules that govern the dealings of
firms with the public. |
| Russell
2000 |
A
commonly cited index of small-cap stocks. |
 Ltd A_files\1x1(1).gif){kind=spacer}