See: Dividend

R-squared
A measure of how much of a portfolio's performance can be explained by the returns from the overall market (or a benchmark index). If a portfolio's total return precisely matched that of the overall market or benchmark, its R-squared would be 1.00. If a portfolio's return bore no relationship to the market's returns, its R-squared would be 0.

Raider
Individual or corporation who purchases a controlling interest in a company's stock. The raider's purpose is to gain control of the target company and to instate new management. Accumulation of more than 5% of the target company's outstanding shares must be reported to the SEC, the exchange in which the target is listed, and the target itself.

See: Takeover; Target Company

Rally
A marked rise that follows a period of decline or sideways movement in the general level of the market or in individual securities.

See: Horizontal Price Movement; Sideways Market

Random Walk
A stock market theory that hypothesizes that past prices are of no use in forecasting future price movements. The theory maintains that prices move in a random pattern and that they are no more predictable than the walking pattern of a wandering person. This directly contradicts technical analysts' use of charts to forecast stock prices.

See: Chartist; Technical Analysis

Range
A security's, or the general market's, highest and lowest price in which it has traded over a specified time--usually a rolling 52 week time period. In newspaper stock listings, a security's 52 week high and low price range is published. Technical analysts watch trading ranges carefully because they believe it is of great importance when a security breaks out of its trading range--high or low end.

See: Historical Trading Range; Technical Analysis

Rate Of Return
1: In common stock, the rate of return equals its dividend yield--calculated by dividing the annual dividend by the original purchase price. Rate of return may also refer to the total return, which is capital appreciation plus the dividend.

2: In fixed-income securities such as bonds and preferred stock, the rate of return equals the current yield, which is the coupon or dividend rate divided by the original purchase price.

See: Real Rate Of Return; Required Rate Of Return; Total Return; Yield; Yield To Call; Yield To Maturity

Rating
The evaluation of credit risk of securities by an established rating service such as Moody's Investors Services, Standard & Poor's Corporation, Fitch Investors Service or Value Line Investment Survey.

See: Credit Rating; Event Risk; Fitch's Rating Service; Moody's Investors Service; Not Rated; Risk; Standard & Poor's Corporation; Value Line Equity Rating Criteri a; Value Line Investment Survey

Realized Profit (Loss)
Any profit or loss attributable to a security's sale or the transfer of title representing ownership of the security.

See: Paper Profit (Loss); Unrealized Profit (Loss)

Real Rate Of Return
An investment's return that is adjusted for inflation.

See: Inflation; Return

Recession
As reflected in the gross national product, a decline in economic activity in at least two consecutive quarters.

See: Gross National Product; Inflation

Reclamation
The procedure whereby certificates, already delivered to settle a transaction, are returned because they are in non-deliverable form. The party who is affected by the bad delivery may recover any losses incurred.

See: Good Delivery Of Securities

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, among other things, to vote on company issues.

See: Dividend; Ex-Dividend; Voting Rights

Red Herring
See Prospectus

Redemption
The repayment of the principal (par) amount of a debt security, or a preferred stock, at or before its maturity. Mutual fund shares are redeemed at net asset value when a shareholder liquidates their shares.

See: Debt Security; Liquidation; Maturity Date; Mutual Fund; Net Asset Value; Par; Preferred Stock; Principal

Redemption Price
1: In bonds and preferred stocks, it is the call price.

2: In mutual funds, it is the net asset value.

See: Bond; Call Price; Mutual Fund; Net Asset Value; Preferred Stock; Redemption

Refunding
The process by which an issuer sells bonds to eliminate some of its other debt. The proceeds of the new issue are used to pay the interest and principal of the older issue. This is generally done to lower the interest costs of the issuer.

Regional Stock Exchanges
National exchanges located around the United States that are registered with the SEC. When referring to a regional exchange, the NYSE is not included. Regional exchanges include Boston, Cincinnati, Midwest (Chicago), Pacific, and Philadelphia. These exchanges list regional issues and many issues that are also listed with the NYSE.

See: Dual Listing; Cincinnati Stock Exchange; New York Stock Exchange; Pacific Stock Exchange; Securities and Exchange Commission

Registered Company
A company that has issued securities in compliance with the registration requirements of the Securities Exchange Act of 1934.

See: Securities Exchange Act Of 1933; Securities Exchange Act Of 1934

Registered Options Principal (ROP)
A brokerage firm employee who supervises registered representatives regarding their client's options account activities and their solicitation of new options clients.

See: Broker; Options; Registered Representative

Registered Representative (RR)
A brokerage firm employee who acts as an account executive for clients. In a full brokerage house, a registered representative solicits clients' business and provides advice on when to buy and sell securities. For this advice, the RR may receive a percentage of the commission that is charged to the client for making such transactions. In a discount firm, a RR facilitates the execution of client orders. The RR does not solicit new customers or give investment advice.

See: Account Executive; Broker; Commission; Full Service Broker

Registered Security
(1) A securities certificate that is recorded in the name of the owner on the books of the issuer. Ownership of the security can only be transferred when the certificate is endorsed by the registered owner.
(2) A securities issue that has been registered with the Securities and Exchange Commission as a new issue or as a secondary offering.

Registrar
An agency, usually a trust company or bank, who has the responsibility of keeping a record of the owners of a corporation's securities and the issuance of securities.

See: Transfer Agent

Registration Statement
A document filed with the Securities and Exchange Commission that explains the purpose of making an offering to the public. The registration statement also details important financial, operational, and historical information about the company.

Regulation T(Reg T)
Federal Reserve Board regulation that governs the extension of credit to clients of broker-dealers. The rules specify the amount and type of credit that may be extended or must be maintained when clients purchase, carry, or trade eligible securities. It defines eligible securities and establishes initial margin requirements. Reg T does not cover the extension or maintenance of credit by a broker-dealer for clients who purchase or trade in exempt securities. Regulation T of the Federal Reserve Board is commonly abbreviated as Reg T.

See: Broker; Dealer; Federal Reserve Board; Initial Margin Requirement; Margin; Margin Security; OTC Margin Stock

Regular Way Delivery (Settlement)
The completion of securities transactions, unless otherwise specified, on the third business day following the transaction. To effect settlement, the securities sold are delivered to the buyer and payment is made to the seller.

Regular way delivery for government securities and options is the next business day following the transaction.