Terms Starting with R

R-Squared is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index.

R-Squared is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index.

Racketeering refers to the act of engaging in criminal activity as a structured group, often to earn illegal income or extort money through coercion, fraud, or theft.

Rate of Return (RoR) is a financial metric used to measure the gain or loss on an investment relative to its cost.

Rational Choice Theory is an economic principle that assumes individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

Real estate refers to land along with any permanent improvements attached to the land, whether natural or man-made—including water, trees, minerals, buildings, homes, fences, and bridges.

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate, allowing investors to earn a share of the income produced without having to buy, manage, or finance any properties themselves.

Real Gross Domestic Product (GDP) measures the value of all goods and services produced by an economy, adjusted for inflation, over a specific period.

The receivables turnover ratio is a financial metric that measures how efficiently a company collects its accounts receivable. It indicates how many times a company's receivables are converted into cash in a given period.

A Registered Investment Advisor (RIA) is a firm or individual who advises clients on investments and manages their portfolios, adhering to a fiduciary standard that requires them to act in the best interests of their clients.

Regression is a statistical method used to determine the relationship between a dependent variable and one or more independent variables.

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements, typically used to identify overbought or oversold conditions in a market.

A renewable resource is a natural resource that can replenish itself naturally over time, making it sustainable for ongoing use.

A repurchase agreement (repo) is a short-term borrowing for dealers in government securities, where the dealer sells the securities to investors with an agreement to repurchase them at a higher price on a future date.

A Request for Proposal (RFP) is a document issued by an organization to solicit proposals from potential suppliers or service providers, as part of a competitive bidding process.

Required Minimum Distribution (RMD) refers to the minimum amount that retirees must withdraw annually from their retirement accounts, such as IRAs and 401(k)s, starting at a certain age.

Retained earnings refer to the portion of net income left over for a business after it has paid out dividends to its shareholders. These earnings are reinvested into the business or held as a reserve for future use.

Return on Assets (ROA) is a financial ratio that measures how effectively a company uses its assets to generate profit.

Return on Equity (ROE) is a financial ratio that measures the profitability of a company relative to its shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

Return on Invested Capital (ROIC) is a profitability ratio that measures how effectively a company uses its capital to generate profits.

Return on Investment (ROI) is a financial metric used to measure the efficiency of an investment, indicating the ratio of net profit to the initial cost of the investment.

A Roth 401(k) is a type of retirement savings plan that allows employees to contribute after-tax dollars, with withdrawals in retirement being tax-free.

A Roth IRA is a type of individual retirement account that allows for tax-free growth and tax-free withdrawals in retirement, provided certain conditions are met.

The Rule of 72 is a simple formula used to estimate the number of years required to double an investment at a given annual fixed rate of return.

The Russell 2000 Index is a stock market index that measures the performance of the 2,000 smallest companies listed on the Russell 3000 Index, representing the small-cap segment of the U.S. equity universe.