Restricted Cash refers to cash that is not available for immediate use by a company because it is set aside for a specific purpose. This cash is often held in separate accounts and is typically reserved for future liabilities or…

Restricted Stock Award: A Restricted Stock Award (RSA) is a grant of company shares that are given to an employee or executive but come with specific restrictions. These restrictions typically include a vesting period during which the recipient cannot sell…

A Restricted Stock Unit (RSU) is a form of equity compensation offered by an employer to an employee in the form of company shares. RSUs are granted to employees as part of their compensation package, but the shares are not…

Retail banking refers to the banking services that are provided to individual consumers and small businesses. It includes a wide range of financial products and services such as savings accounts, checking accounts, personal loans, mortgages, credit cards, and certificates of…

Retail InvestorA retail investor is an individual who buys and sells securities, mutual funds, or other financial instruments for their personal account, rather than for an institution. Retail investors typically have less capital and access to resources compared to institutional…

Retained Earnings refers to the portion of a company's net income that is kept in the business rather than distributed to shareholders as dividends. It is an important measure of a company's profitability and financial health, reflecting the cumulative earnings…

A Retainer Agreement is a contract between a client and a service provider, typically an attorney, consultant, or freelancer, where the client pays a fee in advance for services to be rendered over a specified period. This agreement outlines the…

Retirement Savings Credit The Retirement Savings Credit, also known as the Saver's Credit, is a non-refundable tax credit available to eligible taxpayers who contribute to a retirement plan, such as a 401(k) or an IRA. The credit is designed to…

Return on Assets (ROA) Return on Assets (ROA) is a financial metric that indicates the efficiency of a company in using its assets to generate earnings. It is calculated by dividing net income by total assets. ROA is expressed as…

Return on Capital Employed (ROCE) is a financial metric that measures a company's profitability and the efficiency with which its capital is employed. It is calculated by dividing the operating profit by the total capital employed, which includes equity and…

Return on Equity (ROE) is a financial metric used to assess a company's profitability in relation to shareholders' equity. It measures how effectively management is using a company’s assets to create profits. ROE is calculated by dividing net income by…

Return on Invested Capital (ROIC) is a financial metric used to evaluate the efficiency of a company in generating profits from its capital investments. It is calculated by dividing the net operating profit after tax (NOPAT) by the total invested…

Return on Investment (ROI) is a financial metric used to evaluate the profitability of an investment relative to its cost. It is expressed as a percentage and is calculated using the formula: ROI = (Net Profit / Cost of Investment)…

Returns refer to the process of sending back products to the seller or retailer after purchase, typically due to defects, dissatisfaction, or incorrect items. This process allows customers to receive refunds, exchanges, or store credit. Examples: A customer buys a…

Revenue refers to the total income generated by a business or organization from its activities, primarily from the sale of goods and services. It is often referred to as "sales" or "top line" and is a critical component of financial…

Revenue Bonds are a type of municipal bond that is secured by the revenue generated from a specific project or source, rather than from the general taxing power of the issuing municipality. These bonds are typically issued to fund projects…

A reverse stock split is a corporate action in which a company reduces the total number of its outstanding shares, thereby increasing the share price proportionally. This process does not change the overall market capitalization of the company

Revocable Trust A revocable trust, also known as a living trust, is an estate planning tool that allows the grantor (the person who creates the trust) to maintain control over the assets placed within the trust during their lifetime. The…

Revolving Credit refers to a type of credit that allows the borrower to access a maximum credit limit and borrow against it repeatedly as needed. The borrower can carry a balance from month to month, and interest is charged only…

RevPAR (Revenue Per Available Room) is a performance metric in the hospitality industry used to assess a hotel's ability to generate revenue from its available rooms. It is calculated by dividing the total room revenue by the number of available…

Right of First Refusal (ROFR) is a contractual agreement that gives an individual or entity the right to enter into a business transaction with a property owner or seller before the owner can offer the property or asset to third…

Risk Management is the process of identifying, assessing, and controlling threats to an organization's capital and earnings. These threats, or risks, can stem from various sources including financial uncertainty, legal liabilities, strategic management errors, accidents, and natural disasters. Effective risk…

A Robo Advisor is an automated online platform that provides financial planning and investment management services with minimal human intervention. These services typically involve algorithms that assess an individual's financial situation, risk tolerance, and investment goals to create and manage…

The "Rule of 72" is a simple formula used to estimate the number of years required to double an investment at a fixed annual rate of return. To use the rule, divide 72 by the annual interest rate (expressed as…

Run Rate: Run rate is a financial metric used to project a company's future performance based on its current revenue or earnings. It extrapolates the financial results of a specific period (often a month or a quarter) to estimate annual…