Finance — page 17 of 22

Finance terms

1601. Rate Lock The period of time that a mortgage company will guarantee a loan's interest rate, usually 30 or 60 days.
1602. Rate of return Rate of return is income you collect on an investment expressed as a percentage of the investment's purchase price.
1603. Rate Spread The price data take the form of a "rate spread." Lenders must report the spread (difference) between the annual percentage rate (APR) on a loan and the…
1604. Rating Rating means evaluating a company, security, or investment product to determine how well it meets a specific set of objective criteria.
1605. Rating service A rating service, such as A.M. Best, Moody's Investors Service, or Standard & Poor's, evaluates bond issuers to determine the level of risk they pose to…
1606. Real Estate Typically includes residential property (e.g., homes, apartment buildings, hotels), commercial property (e.g.
1607. real estate fund A mutual fund that owns real estate, often commercial properties.
1608. Real Estate Investment Trust (REIT) Managed diversified portfolios of real estate and mortgages. REITs are usually publicly traded like mutual funds and qualify as excepted investment funds…
1609. Real Estate Settlement Procedures Act (RESPA) (RESPA) Federal law that, among other things, requires lenders to provide "good faith" estimates of settlement costs and make other disclosures regarding the…
1610. Real interest rate Your real interest rate is the interest rate you earn on an investment minus the rate of inflation. For example, if you're earning 6.
1611. Real property A dwelling or home is often referred to as real property.
1612. Real property tax A real property tax is a local tax on the value of real estate. The property may be assessed at full value, which is presumably the price that the owner…
1613. Real rate of return You find the real rate of return on an investment by subtracting the rate of inflation from the nominal, or named, rate of return.
1614. real return Real Return is the net return of an investment, adjusted for inflation during the time you have held that investment but prior to tax considerations.
1615. Real Time When an event is reported as it happens - such as a quick jump in a stock's price or the constantly changing numbers on a market index - you are getting…
1616. realized and unrealized gain/loss The results of securities transactions are usually categorized into either realized gains or losses upon the sale of security.
1617. realized earnings Realized Earnings is investment income as earned by a fund and considered part of you income.
1618. Realized gain When you sell an investment for more than you paid, you have a realized gain. For example, if you buy a stock for $20 a share and sell it for $35 a share…
1619. Realized Gain (Loss) A gain (loss) that has occurred financially. The difference between the principal amount received and the cost basis after the sale of an asset.
1620. Reasons for Denial These fields identify why an application was denied. As many as three reasons may be reported.
1621. Recapture When you recapture assets, you regain them, usually because of the provisions of a contract or legal precedent.
1622. Recession In general usage, the word recession connotes a marked slippage in economic activity.
1623. Recharacterization When you have converted one type of individual retirement account (IRA) to another type - such as a traditional IRA to a Roth IRA - and then convert it…
1624. Reconciliation The process of analyzing two related records and, if differences exist between them, finding the cause and bringing the two records into agreement.
1625. Record date To be paid a stock dividend, you must own the stock on the day that the corporation's board of directors names as the record date, also known as the date…
1626. Recording Fees Charged by the Registry of Deeds for the filing of documents or details of a legal document to make them a matter of public record.
1627. Recusal Is an ethics agreement in which an employee disqualifies himself from acting in official matters involving entities that present a financial conflict of…
1628. Red herring When a security is offered to the public for the first time, the underwriter prepares a preliminary prospectus, called a red herring.
1629. Redemption A redemption is the right given to a security holder to sell, at anytime, some or all of his/her units back to the fund for cash.
1630. Redemption fee Some open-end mutual funds impose a redemption fee when you sell shares in the fund, often during a specific, and sometimes brief, period of time after…
1631. Redlining The alleged practice of certain lending institutions of not making mortgage, home improvement, and small business loans in certain neighborhoods-usually…
1632. Refinance The repayment of a debt from the proceeds of a new loan using the same property as security.
1633. Refinancing A way of obtaining a better interest rate, lower monthly payments, or borrow cash on the equity in a property that has built up on a loan.
1634. Refund An amount paid back because of an overpayment or because of the return of an item previously sold.
1635. refundable credit When the amount of a credit is greater than the tax owed, taxpayers can receive a "refund" for some of the unused credit.
1636. Regional exchange Stock exchanges in cities other than New York are called regional exchanges. They list both regional stocks, which may or may not be listed on the New…
1637. Registered bond When a bond is registered, the name of the owner and the particulars of the bond are recorded by the issuer or the issuer's agent.
1638. Registered investment adviser (RIA) Investment advisers who register with the Securities and Exchange Commission (SEC) and agree to be regulated by SEC rules are known as registered…
1639. Registered representative An investment salesperson or broker who is licensed by the SEC (Securities and Exchange Commission) and by the NYSE (New York Stock Exchange).
1640. Regressive tax A regressive or flat income tax system taxes everyone at the same rate, as sales tax does.
1641. Regular Program The final phase of a community's participation in the National Flood Insurance Program.
1642. Regular Program Community A community wherein a Flood Insurance Rate Map is in effect and full limits of coverage are available under the Flood Disaster Protection Act (FDPA or…
1643. Regulation D Regulation D is an exemption from federal securities registration for private placements of securities.
1644. Regulation T Regulation T is the Federal Reserve Board rule that governs how much you can borrow through your margin account to cover the purchase price of a security.
1645. Regulation Z Under Regulation Z, a Federal Reserve Board rule covering provisions of the Consumer Credit Protection Act of 1968, lenders have to tell you certain terms…
1646. Rehypothecation Rehypothecation occurs when your broker, to whom you have hypothecated - or pledged - securities as collateral for a margin loan, pledges those same…
1647. Reinstatement The process by which a life insurance company puts a policy back in force after it lapsed because of nonpayment of renewal premiums.
1648. Reinvestment Using dividends, interest, and/or capital gains distributions generated by a mutual fund investment to purchase additional shares, rather than receiving…
1649. Reinvestment risk Reinvestment risk occurs when you have money from a maturing fixed-income investment, such as a certificate of deposit (CD) or a bond, and want to make a…
1650. Relative An individual who is related to the filer or reporting individual, as father, mother, son, daughter, brother, sister, uncle, aunt, great uncle, great…
1651. Release of Lien To free a piece of real estate from a mortgage.
1652. Remittance Transfers Federal law defines “remittance transfers” to include certain electronic money transfers from consumers in the United States to recipients abroad…
1653. Renewable term A renewable term life insurance policy allows you to extend your coverage for an additional period without having to requalify for coverage, provided that…
1654. Renewable Term Insurance Term insurance providing the right to renew at the end of the term for another term or terms, without evidence of insurability.
1655. Renewal A form of extending an unpaid loan in which the borrower's remaining unpaid loan balance is carried over (renewed) into a new loan at the beginning of the…
1656. Rental Reimbursement Coverage This coverage pays - up to a defined amount - your expenses to rent a vehicle if you have a loss covered under comprehensive or collision benefits.
1657. Rental Reimbursement/Transportation Expenses An optional policy benefit that pays the rental fee (usually $15 to $20 per day) if you must rent a vehicle for a reasonable time while your vehicle is…
1658. Renters insurance A form of insurance that covers a policyholder’s belongings against perils. It also provides personal liability coverage and additional living expenses.
1659. Repayment Plan a process where a homeowner promises to pay down past due amounts on a mortgage while continuing to make regular monthly payments on a property
1660. Replacement Cost Pays the dollar amount needed to replace the structure or damaged personal property without deducting for depreciation but limited by the policy’s…
1661. Replacement Cost Value (RCV) (RCV) The cost to replace property with the same kind of material and construction without deduction for depreciation.
1662. Reporting Individual The term is synonymous with "filer" of an SF 278, Public Financial Disclosure Report (see 5 C.F.R. § 2634.
1663. Reporting Status Is a type of financial disclosure report an FDM filer can complete. For the SF 278 Filer, the Reporting Statuses are New Entrant, Incumbent, Termination…
1664. Repurchase Agreements (“Repos”) An agreement to purchase securities from an entity for a specified amount of cash and to resell the securities to the entity at an agreed upon price and…
1665. Required beginning date (RBD) Your required beginning date is the date by which you must take your first minimum required distribution from retirement savings plans that require…
1666. Rescission The cancellation, or “tearing-up,” of a contract. Some consumer loans (home mortgages) feature a 3-day right of rescission during which the borrower…
1667. Reserve requirement The Federal Reserve requires its member banks to keep a certain percentage of their customer deposits in cash and other liquid assets in reserve at all…
1668. Residential Condominium Building Association Policy (RCBAP) (RCBAP) Policy issued to insure a residential condominium building and all units within the building, provided that the building is located in a Regular Program…
1669. Residual Interest Interest that continues to accrue on your credit card balance from the statement cycle date until the bank receives your payment.
1670. Residual market Insurers, such as assigned risk plans and the Texas FAIR Plan, that exist to provide coverage for those who cannot get it in the standard market.
1671. resources Factors needed to produce goods and services (natural, human, and capital goods).
1672. Respondent Name The name of the HMDA reporting institution.
1673. Respondent or Reporter ID (RID) (RID) A ten-digit number used to identify a HMDA reporting institution. RIDs often require leading zeros to meet the length requirement.
1674. Restricted security Restricted securities are stocks or warrants that you acquire privately, through stock options or a corporate merger, rather than by buying them in the…
1675. Retail credit card A credit card associated with a retail store. Depending on the type of card, you may be able to use it at locations other than the one where you received…
1676. Retained earnings Retained earnings, also known as retained surplus, are the portion of a company's profits that it keeps to reinvest in the business or pay off debt…
1677. Retirement Accounts An account that helps you plan for your retirement. It is also the best way to save for tomorrow.
1678. Retirement Annuity A monthly annuity payable to a member or his designated beneficiary. Retirement Systems This is the informal name used by the South Carolina Retirement…
1679. Return Your return is the profit or loss you have on your investments, including income and change in value.
1680. Return Item A negotiable instrument—principally a check—that has been sent to one bank for collection and payment and is returned unpaid by the sending bank.
1681. Return on equity Return on equity (ROE) measures how much a company earns within a specific period in relation to the amount that's invested in its common stock.
1682. Return on investment Your return on investment (ROI) is the profit you make on the sale of a security or other asset divided by the amount of your investment, expressed as an…
1683. Return premium The premium returned to an insured for canceling or amending a policy.
1684. Returned payment This is a payment that you make to us that is not honored by your financial institution.
1685. Revenue Revenue is the money you collect for providing a product or service. Revenue is different from earnings, which is what's left of your revenue after…
1686. Revenue bond Revenue bonds are municipal bonds issued to finance public projects, such as airports and roadways.
1687. revenue tariff A tax on imported goods levied primarily to generate revenue for the federal government.
1688. Reverse merger In a reverse merger, a privately held company purchases a publicly held company and, as part of the new entity, becomes public without an initial public…
1689. Reverse Mortgage A reverse mortgage is a special home loan product that allows a homeowner aged 62 or older the ability to access the equity that has accumulated in their…
1690. Reverse Repurchase Agreement A customer sells a group of securities to a broker-dealer under the provision that the customer will buy them back by a predetermined date for a specific…
1691. Reverse stock split If a company's stock is trading at a low price, the company may decide to reduce the number of existing shares and increase their price by consolidating…
1692. Review Chain The assigned users selected within FDM to review and eSign a filer's financial disclosure report before it is completed. See definition of "Complete".
1693. Review Date Review Date is the date on which a reviewer has completed a review of the report.
1694. Reviewer For FDM purposes, a person who checks a filer's financial disclosure report for accuracy and completeness and to identify those financial interests that…
1695. Reviewing Official The designated agency ethics official or his delegate, the Secretary concerned, the head of the agency, or the Director of the Office of Government…
1696. Revocable trust A revocable trust is a living trust that can be modified or revoked by the grantor, or person who establishes the trust and transfers property to it.
1697. Revolving Credit A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services.
1698. Rider A written agreement attached to the policy expanding or limiting the benefits otherwise payable under the policy. Same as an "endorsement."
1699. Right of Offset Banks' legal right to seize funds that a guarantor or debtor may have on deposit to cover a loan in default. It is also known as the right of set-off.
1700. Right of Rescission Right to cancel, within three business days, a contract that uses the home of a person as collateral, except in the case of a first mortgage loan.