R-Squared R-Squared, or the coefficient of determination, is a statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model. R-Squared values range from 0 to…

Racketeering refers to the act of conducting illegal business activities, often as part of an organized crime operation. It typically involves a pattern of illegal activity that is committed in furtherance of an enterprise that is involved in illegal activities.Common…

The Random Walk Hypothesis is a financial theory that suggests that stock prices and market indices evolve according to a random walk and thus the future price changes are independent of past price changes. This implies that the stock market…

Ratio Analysis is a quantitative method used to evaluate the financial performance and position of a company by comparing various financial metrics from its financial statements. This technique involves calculating ratios from the financial statements, such as the balance sheet…

Real Estate Owned (REO) refers to properties that are owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction. When a borrower defaults on their mortgage and the property is not sold at auction, it…

Real Property Real property, also known as real estate, refers to land and anything permanently attached to it, such as buildings, trees, and mineral rights. It encompasses the physical land itself as well as the rights associated with owning that…

The Real Rate of Return is the rate of return on an investment adjusted for inflation, reflecting the true increase in purchasing power. It is calculated by subtracting the inflation rate from the nominal interest rate.Formula: Real Rate of Return…

Realized Gain refers to the profit that an investor earns when they sell an asset for a price higher than its purchase price. This gain is "realized" at the point of sale, as opposed to "unrealized" gains, which occur when…

Realized Loss refers to the loss that occurs when an asset is sold for less than its purchase price, resulting in a financial loss that is recognized in the accounting records. This loss is "realized" because the transaction has been…

Realtor refers to a licensed real estate professional who is a member of the National Association of Realtors (NAR) in the United States. Realtors adhere to a strict code of ethics and are committed to providing clients with expert advice…

Redemption Fee: A redemption fee is a charge that investors may incur when they sell or redeem shares in a mutual fund or other investment product before a specified period. This fee is intended to discourage short-term trading and is…

Refinancing is the process of replacing an existing loan with a new loan, typically with different terms. This can involve obtaining a new loan to pay off the original loan, often with the aim of securing better interest rates, reducing…

Registered Investment Advisor A Registered Investment Advisor (RIA) is a firm or individual that provides investment advice or manages investment portfolios for clients and is registered with the Securities and Exchange Commission (SEC) or state regulators. RIAs have a fiduciary…

Regression is a statistical method used to determine the relationship between a dependent variable and one or more independent variables. It aims to model the expected value of the dependent variable based on the values of the independent variables. Regression…

Regulation Fair Disclosure (Reg FD) is a rule adopted by the U.S. Securities and Exchange Commission (SEC) in 2000 to promote full and fair disclosure of information by publicly traded companies. The regulation aims to eliminate selective disclosure, ensuring that…

Reinforcement Learning Reinforcement Learning (RL) is a type of machine learning where an agent learns to make decisions by taking actions in an environment to maximize cumulative reward. The agent receives feedback in the form of rewards or penalties, which…

Reinsurance is a risk management practice in which an insurance company transfers a portion of its risk to another insurance company, known as the reinsurer. This process allows the primary insurer to reduce the potential for large losses and stabilize…

Relative Strength Index (RSI) Indicator The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It is primarily used to identify overbought or oversold conditions in a market, helping traders make informed…

Remaining Performance Obligation (RPO) refers to the amount of revenue that a company is contractually obligated to provide in the future for services or products that have not yet been delivered or completed. RPO is an important metric in financial…

Remittance refers to the transfer of money, often by a foreign worker to their family or friends in their home country. This process is crucial for many economies, as it provides financial support to individuals and communities.Examples of remittance include:…

Remittance refers to the transfer of money, often by a foreign worker to their family or friends in their home country. This process is crucial for many economies, as it provides financial support to individuals and communities.Examples of remittance include:…

A Repurchase Agreement (RePo) is a short-term borrowing mechanism where one party sells an asset, typically government securities, to another party with the agreement to repurchase it at a specified future date and price. This transaction functions as a loan,…

A Request for Proposal (RFP) is a formal document issued by an organization to solicit proposals from potential vendors or service providers for a specific project or service. The RFP outlines the project's requirements, objectives, and criteria for selection, allowing…

Residual Income refers to the amount of income that an individual or business retains after all operating expenses and costs have been deducted from total revenue. It represents the net income generated beyond the minimum required return on investment and…

The Residual Income Model is a valuation method that calculates the intrinsic value of a company based on its expected future residual income, which is the net income generated after deducting the cost of equity capital. This model helps assess…