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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

Q

Qualified Plan - Tax-deferred plan, like 401(k) and 403(b), enabling employees to accumulate savings for retirement.
Qualitative Analysis - Analysis that is concerned with such questions as the experience, character, and general caliber of management, employee morale, and the status of labor relations rather than with the actual financial data about the company.
Quality - The credit rating given to an individual security by a rating agency such as Moody's or Standard & Poor's.
Quantitative Analysis - Analysis dealing with measurable factors such as: the value of assets, the cost of capital, the historical and projected patterns of sales, costs and profitability of a company.
Quarterly Refunding - Auctions of Treasury notes and bonds occurring in May, August, November, and February.
Quarterly Report - A report submitted on a quarterly basis fulfilling an SEC requirement stating that all public companies must report relevant information about themselves on a timely basis to all interested parties. Also known as a Form 10Q.
Quick Ratio - An indicator of a company's financial strength (or weakness). Calculated by taking current assets less inventories, divided by current liabilities. Also called Acid Test.
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.
Quoted Price - Price at which the last sale or purchase was transacted for a specific security or commodity.

R

R² - A measurement of how closely the portfolio's performance correlates with the performance of a benchmark index, such as the S&P 500. R2 is a proportion which ranges between 0.00 and 1.00. An R2 of 1.00 indicates perfect correlation to the benchmark index, that is, all of the portfolio's fluctuations are explained by performance fluctuations of the index, while an R2 of 0.00 indicates no correlation. Therefore, the lower the R2, the more the fund's performance is affected by factors other than the market as measured by that benchmark index.
Rally - A marked rise that follows a period of decline or sideways movement in the general level of the market or in individual securities.
Range - The high and low prices for the day for a security.
Rate of Return - The percentage gain or loss for a mutual fund in a specific time period. This number assumes that all distributions are reinvested at the current rate of return. Annualized return is a compounded yearly rate.
Rating - The alphabetical designation attesting to the investment quality of a bond. Treasury and agency securities are AAA-rated, said to be "investment grade."
Rating Service - Company such as Moody's or Standard & Poor's that rates various debt and preferred stock issues for safety of payment of principal, interest or dividends. The issuing company or municipality pays a fee for the rating.
RATS (Registered Certificates of Accrual on Treasury Securities) - Another trade name for derivative zeros backed by U.S. Treasury obligations.
RBD - Required Beginning Date. On April 1 of the year after reaching age 70½, a retirement account holder must begin withdrawing an RMD. For qualified retirement plans, the RBD is generally the later of April 1 of the year after reaching 70½ or April 1 of the year following the employee's termination of employment.
Real Estate Investment Trusts (REITs) - Publicly traded companies that own, develop, and operate apartment complexes, hotels, office buildings and other commercial properties.
Realized Capital Gain/Loss - Actual profit or loss incurred from the sale of a security.
Real-Time Quote - A real-time stock or bond quote is one that states a security's most recent offer to sell or bid (buy). A delayed quote shows the same bid and ask prices 15 or 20 minutes after a trade takes place.
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.
Recession - A period of zero or negative economic growth and high unemployment.
Record Date - The day that an individual must be the owner of record to be entitled to an upcoming dividend.
Redemption - The retiring of a debt instrument by paying cash.
Redemption Charge - The maximum commission charged by a mutual fund when redeeming shares. For example, a 2% redemption charge (also called a "back-end load") on the sale of shares valued at $1000 will result in payment of $980 (or 98% of the value) to the investor. This charge may decrease as shares are held for longer time periods.
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 Fees - Unlike a CDSC, this is usually a relatively small percentage, such as one percent of the amount sold, and it typically remains at a fixed level. This charge usually is not imposed forever, rather, only on fund shares sold within a specified time period from purchase, such as six months.
Redemption Notice - A notice that a corporation or a municipality is calling or redeeming a certain issue of bonds.
Red Herring - The preliminary prospectus. The name comes from the advisory that is printed on the face of the prospectus in red ink.
Refunding - The retiring of a debt instrument by issuing a new debt instrument.
Regional Bell Operating Companies (RBOCs) - Local telephone service companies, formed in 1984 after the break-up of "Ma Bell." Sometimes referred to as LECs, or local exchange companies, RBOCs are currently able to compete with long-distance companies to offer long-distance and international calls.
Regional Bond - Regional Bond Fund seeks current income. Generally invest in corporate and/or governments debt securities focusing on a single region, but not limited to one country.
Registered Bond - A bond on which the owner's name appears on the certificate.
Registered Certificates of Accrual on Treasury Securities (RATS) - Another trade name for derivative zeros backed by U.S. Treasury obligations.
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 is registered.
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.
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.
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.
Reg T Excess - In a margin account, the amount by which the loan value exceeds the debit balance.
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 regulation established by the Federal Reserve Board which covers the extension of credit to clients by securities brokers, dealers, and members of the national exchanges. It sets the initial margin requirement and defines eligible, ineligible, and exempt securities.
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.
Reinvestment - Using dividends, interest and capital gains earned in an investment to purchase additional shares, rather than receiving the distributions in cash.
Reinvestment Date - The date that a distribution is used to purchase additional fund shares. This occurs on the same day that the distribution is paid (the ex-dividend date).
Reinvestment Opportunity - Ability to reinvest interest and principal paid by income securities.
Reinvestment Privilege - Allows a client to reinvest up to the number of Class A shares redeemed, within 30 days of redemption, at the then prevailing Net Asset Value without a sales load, or reinstate the account for the purposes of exercising the Exchange Privilege. The Reinvestment Privilege may be exercised only once.
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.
Relative Strength - A stock's price movement over the past year as compared to a market index (the S&P 500). A value below 1.0 means the stock shows relative weakness in price movement (underperformed the market); a value above 1.0 means the stock shows relative strength over the one-year period. Equation for Relative Strength: [current stock price/year-ago stock price] [current S&P 500/year-ago S&P 500].
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.
REPO - Repurchase Agreement. Acquisition by a fund of an underlying debt security whereby the seller agrees to repurchase the securities, and the fund will resell the security at a decided price and time (usually within 7 days).
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.
Reserve Requirement - Federal Reserve limitation imposed upon member banks requiring them to keep financial assets in the form of cash and other liquid assets as a percentage of demand deposits and time deposits.
Residual Value - The estimated value of a car at the end of a lease. When an individual leases a car, you generally pay the difference between the original value and the residual value.
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.
Restricted Stock - Stock that is not registered under the Securities Exchange Act of 1933. Restricted stock is either purchased through a company's stock option plan, or a private placement. The investor is required to sign a letter agreeing that the purchase is for investment and not short term profit. The investor is required to hold the stock for two years before it can be sold. Sale of restricted stock is governed by SEC Rule 144.
Retained Earnings - Accounting earnings that are retained by the firm for reinvestment in its operations; earnings that are not paid out as dividends.
Retention Requirement - The amount that must be retained in a restricted margin account if anything is to be withdrawn.
Retirement Plans - Programs which provide employee savings for after retirement. Can be based on both employee and employer contributions.
Retractment - A price movement in the opposite direction of the previous trend.
Return - The money that an investment earns over a certain period of time. Lower-risk investments generally earn low or moderate returns. Higher returns require investors to take more risk.
Return on Assets (ROA) - An indicator of profitability. Determined by dividing net income for the past 12 months by total assets. The result is usually expressed as a percentage.
Return on Equity (ROE) - The last fiscal year earnings per share (EPS) divided by the last fiscal year net equity per share of common stock. ROE tells shareholders how effectually their money is being employed.
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 whose issuer’s ability to pay interest and principal is based on revenue earned from a specific project.
Revenues - How much a company made from selling its products and/or services.
Revenue Trades - Includes all client trades (both domestic and international) that generate either commission revenue or revenue from principal markups. Trades with institutional clients are excluded.
Reversal - Canceling a transaction which was processed in error.
Reverse Split - Procedure whereby a corporation reduces the number of outstanding shares. The total market value of the shares remains the same after the reverse split, however, a share is worth more. A company, for example, executes a 1 for 2 split. An investor owning 1000 shares will deliver them to the issuer and they will receive half as many new shares--but the shares will have double the value of the original shares. Thus, the investor now has 500 shares with a value of $8, instead of 1000 at $4--that is, the investor shares are worth the same amount as before the split. Reverse splits may be used by corporations whose shares are selling at very low market prices. They believe that if the security's price is raised, it will attract more investors.
Reverse Stock Split - A proportionate decrease in the number of shares, but not the value of shares of stock held by shareholders. Shareholders maintain the same percentage of equity as before the split. For example, a 1-for-3 split would result in stockholders owning 1 share for every 3 shares owned before the split. A firm generally institutes a reverse split in order to boost its stock's market price because it thinks the price is too low to attract investors.
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 - Ability to reduce the sales charge payable on purchases based on the aggregate current market value of assets from previous purchases.
Right of Survivorship - Right entitling one owner of property held jointly to take title to it when the other owner dies.
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 - Refers to an investment’s vulnerability to fluctuations in value relative to changing economic or market conditions. Such factors as credit quality, currency exchange rates, inflation rates or the direction of interest rates may increase an investment’s volatility. The level of risk incurred by a fund shareholder varies from fund to fund, depending primarily on the types of securities in which a fund invests.
RMD - Required Minimum Distribution. The minimum amount that the IRS requires to be withdrawn each year from all tax-advantaged retirement plans. Roth IRAs are exempt from this rule during the owner’s lifetime. Also referred to as "minimum required distribution.
RNS (Regulatory News Service) - 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.
Road Show - The process preceding the initial public offering of a stock where bankers and company managers travel to present their company to possible investors with the purpose of gauging interest in the upcoming stock in order to set the opening price.
Rollover - Process in which retirement plan proceeds are delivered directly to a plan participant who, within 60 days, invests them in a new IRA plan or other similar tax-deferred vehicle to avoid the imposition of certain penalties and/or taxes.
Rollover IRA - A traditional IRA holding money from a qualified plan. If not mixed with other contributions, these assets can later be put into another qualified plan. Also known as a conduit IRA.
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 2a-7 - Investment Company Act of 1940 regulation providing for mutual funds which seek to hold themselves out as money market funds or which seek to use "money market" in their name to maintain a weighted average portfolio maturity of 90 days or less and to not invest in securities with remaining maturities exceeding 13 months, among other portfolio quality and diversification requirements. Designed to help insure that money market funds can maintain a stable $1 share price, which is not guaranteed.
Rule 12b-1 Plan - Written plan pursuant to which a fund can make payments out of fund assets to finance advertising, distribution and other promotional expenses.
Rule 18F-3 - An Amendment to the Investment Act of 1940 which allows Registered Open-End Investment Management Companies to issue multiple classes of shares without the need to obtain an exemptive order under section 18 of the 1940 Act. The rule became effective on April 3, 1995.
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 1000® Index - The Russell 1000® Index consists of the largest 1000 companies in the Russell 3000 Index. This index represents the universe of large capitalization stocks from which most active money managers typically select. The Index was developed with a base value of 130.00 as of December 31, 1986.
Russell 2000® Index - The Russell 2000® Index is a market capitalization weighted index measuring the performance of the smallest 2,000 companies, on a market capitalization basis, in the Russell 3000 index.
Russell 3000® Index  - A market-capitalization weighted index measuring the performance of the 3,000 largest US companies based on total market capitalization. The following indexes are subsets of the Russell 3000 Index:
Russell 3000 Autos and Transportation Index - Consists of what are traditionally known as transportation companies plus automobile -related companies.
Russell 3000 Consumer Discretionary and Services Index - Consists of companies that manufacture products and provide discretionary services directly to the customer.
Russell 3000 Consumer Staples Index - Consists of companies that provide products directly to the consumer that are typically considered non-discretionary items based on consumer purchasing habits, are. Industries in the Russell indexes will change from period to period.
Russell 3000 Financial Services Index -Consists of companies that provide financial services.
Russell 3000 Growth Index - Consists of measuring the performance of stocks with higher price-to-book ratios and higher forecasted growth values. 
Russell 3000 Health Care Index - Consists of companies that are involved in medical services or health care.
Russell 3000 Integrated Oils Index - Consists of oil companies involved in all parts of the exploration, production, and refining processes.
Russell 3000 Materials and Processing Index - Consists of companies that extract or process raw materials.
Russell 3000 Other Energy Index - Consists of energy-related businesses other than integrated oils.
Russell 3000 Producer Durables Index - Consists of companies that convert unfinished goods into finished durables used to manufacture other goods or provide services.  
Russell 3000 Technology Index - Consists of companies that serve the electronics and computer industries or that manufacture products based on the latest applied science.
Russell 3000 Utilities Index -  Is comprised of over 200 utility stocks that are included in the Russell 3000 Index.