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Superglossary - Finance Category: Economy and Finance > Finance Date & country: 16/12/2013, USA Words: 5410

Riskless Transaction
A transaction that is guaranteed a profit, such as the arbitrage of a temporary differential between

Risky Asset
An asset whose future return is uncertain.

Road Show
A promotional presentation by an issuer of securities to potential buyers about the desirable qualit

Rocket Scientist
An employee of an investment firm (often having a Ph.D. in physics or mathematics) that works on hig

Roll Down
To move to an option position with a lower exercise price.

Roll Forward
To move to an option position with a later expiration date.

Roll Order
(1) Dividend roll; (2) Replacement of a maturing position with an identical one in the new maturity;

Roll Over
To reinvest funds received from a maturing security in a new issue of the same or a similar security

Roll Up
To move to an option position with a higher exercise price. In venture capital, refers to the ventur

Roll, Richard
Author of path-breaking work on asset pricing including the famous Roll critique. Finance professor

Rollover
Means that a loan is periodically repriced at an agreed spread over the appropriate, currently preva

Ross, Stephen
Developer of the Arbitrage Pricing Theory. Finance professor at MIT.

Rotation
An active asset management strategy that tactically overweighted and underweighted certain sectors,

Roth IRA
Individual Retirement Account that allows contributors to invest up to $2,000 per year, and to withd

Round Lot
A trading order typically of 100 shares of a stock or some multiple of 100. Related

Round-Trip Trade
The purchase and sale of a security within a short period of time.

Round-Trip Transactions Costs
Costs of completing a transaction, including commissions, market impact costs, and taxes.

Round-Turn
Procedure by which the long or short position of an individual is offset by an opposite transaction

Royalty
Payment for the right to use intellectual property or natural resources.

Rubber Check
A check that bounces for lack of funds.

Rule 13-D
Often used in risk arbitrage. Requirement under Section 13-d of the Securities Act of 1934 that a fo

Rule 14-D
Often used in risk arbitrage. Regulations and restrictions covering public tender offers and related

Rule 144
Restricts solicitation of buyers to complete the sell order of an insider (unless the firm is alread

Rule 144a
SEC rule allowing qualified institutional buyers to buy and trade unregistered securities.

Rule 405
NYSE codification of 'know your customer' rules, which require that a customer's situation is suitab

Rule 415
Permits corporations to file a registration for securities they intend to issue in the future when m

Rule Of 72
A formula used to determine the amount of time it will take for invested money to double at a given

Rules Of Fair Practice
Rules established by the NASD that lay down guidelines for just and equitable principles of trade an

Rumortrage
A term combining the words 'rumor' and arbitrage, used to describe trading that occurs on the basis

Rump
Usually used in the context of a merger or acquisition. A group of shareholders who refuse to tender

Run
A run consists of a series of bid and offer quotes for different securities or maturities. Dealers g

Rundown
A summary of the amount and prices of a serial bond issue that is still available for purchase.

Running Ahead
The illegal practice of trading in a security for a broker's personal account before placing an orde

Runoff
Used for listed equity securities. Series of trades printed on the ticker tape that occur on the NYS

Russell Indexes
U.S. equity index widely used by pension and mutual fund investors that are weighted by market capit

Russian Trading System (RTS)
An electronic system in Russia, like the Nasdaq system on which the majority of Russian equities tra

Safe Harbor
Often used in risk arbitrage as a form of shark repellent. A target company acquires a business so o

Safe Harbor Lease
A lease to transfer tax benefits of ownership (depreciation and debt tax shield) from the lessee, if

Safekeep
Holding by a bank of bonds and money market instruments. For a fee, the bank clips coupons and prese

Safety Cushion
In a contingent immunization strategy, the difference between the initially available immunization l

Safety-Net Return
The minimum available return that will trigger an immunization strategy in a contingent immunization

Salaries
Compensation provided by a business to employees, excluding benefits. On an income statement, Salari

Salary
Regular wages and benefits an employee receives from an employer.

Salary Freeze
A temporary halt to increases in salary due to financial difficulties experienced by a company.

Salary Reduction Plan
A plan allowing employees to contribute pre-tax income to a tax-deferred retirement plan.

Sale
An agreement between a buyer and a seller on the price to be paid for a security, followed by delive

Sale And Lease-Back
Sale of an existing asset to a financial institution that then leases it back to the user. Related:

Sales
Another term for revenue.

Sales Charge
The fee charged by a mutual fund at purchase of shares, usually payable as a commission to a marketi

Sales Forecast
A key input to a firm's financial planning process. External sales forecasts are based on historical

Sales Or Revenues
Total sales or revenues (fiscal year basis).

Sales Tax
A percentage tax on the selling price of goods and services.

Sales-Type Lease
The leasing out of a firm's own equipment, such as a printing company leasing its own presses, there

Salvage Value
The scrap value of an asset. Acquisition cost minus salvage value yields the total amount that an as

Salvage Value
Scrap value of plant and equipment.

Same-Day Funds Settlement (SDFS)
A method of settlement used in trading between well-collateralized parties in good-the-same-day fede

Same-Day Substitution
Offsetting changes in a margin account during the day that result in no overall change in the balanc

Samurai Bond
A yen-denominated bond issued in Tokyo by a non-Japanese borrower. Related

Samurai Market
The foreign market in Japan.

Santa Claus Rally
Seasonal rise in stock prices in the last week of the calendar year, between Christmas and New Year'

Saturday Night Special
Often used in risk arbitrage. Sudden attempt by one company to take over another by making a public

Saucer
Technical chart pattern depicting a security whose price has reached bottom and is moving up.

Savings And Loan Association
National- or state-chartered institution that accepts savings deposits and invests the bulk of the f

Savings Bank
An institution that primarily accepts consumer savings deposits and to make home mortgage loans.

Savings Bond
A government bond issued in face value denominations from $50 to $10,000, with local and state tax-f

Savings Deposits
Accounts that pay interest, typically at below-market interest rates, that do not have a specific ma

Savings Element
Used in the context of life insurance, the cash value built up in a policy, which equals the amount

Savings Rate
Personal savings as a percentage of disposable personal income.

Scale
Payment of different rates of interest on CDs of varying maturities. A bank is said to 'post a scale

Scale In
Gradually taking a position in a security or market over time.

Scale Order
Order to buy (sell) a security that specifies the total amount to be bought (sold) and the amount to

Scale-Enhancing
Describes a project that is in the same risk class as the whole firm. That is, the project allows th

Scalp
To trade for small gains. Scalping normally involves establishing and liquidating a position quickly

Scattered
Used for listed equity securities. Unconcentrated buy or sell interest.

Scenario Analysis
The use of horizon analysis to project total returns under different reinvestment rates and future m

Schedule 13d
Disclosure form required when more than 5% of any class of equity securities in a publicly held corp

Schedule C
Describes membership requirements and procedures of NASD, in its bylaws.

Scheduled Cash Flows
The mortgage principal and interest payments due to be paid under the terms of the mortgage, not inc

Scorched-Earth Policy
Often used in risk arbitrage. Any technique a company that has become the target of a takeover attem

SCORE
Stands for Special Claim on Residual Equity, a certificate that entitles the owner to the capital ap

Screen Stocks
To analyze various stocks in search of stocks that meet predetermined criteria. For example, a simpl

Scrip
A temporary document that represents a portion of a share of stock, often issued after a stock split

Scripophily
Collecting stock and bond certificates for their scarcity, rather than for their value as securities

Search Costs
Costs associated with locating a counterparty to a trade, including explicit costs (such as advertis

Seasonally Adjusted
Mathematically adjusted by moderating a macroeconomic indicator (e.g., oil prices/imports) so that r

Seasoned
In the case of equity, having gained a reputation for quality with the investing public and enjoying

Seasoned Datings
Extended credit for customers who order goods in periods other than peak seasons.

Seasoned Issue
Issue of a security for which there is an existing market. Related

Seasoned New Issue
A new issue of stock after the company's securities have previously been issued. A seasoned new issu

Seat
Position of membership on a securities or commodity exchange, bought and sold at market prices.

SEC Fee
Small fee the SEC charges to sellers of equity securities on an exchange.

Second Mortgage Lending
Loans secured by real estate previously pledged in a first mortgage.

Second Pass Regression
A cross-sectional regression of portfolio returns on betas. The estimated slope is the measurement o

Second Round
Stage of venture capital financing following the start-up and first round stages and before the mezz

Second-Preferred Stock
Preferred stock issue that has less priority in claiming dividends and assets in liquidation than an

Second-To-Die Insurance
Insurance policy that, on the death of the spouse dying last, pays a death benefit to the heirs that

Secondary Distribution-Offering
Public sale of previously issued securities held by large investors, usually corporations or institu

Secondary Issue
(1) Procedure for selling blocks of seasoned issues of stocks. (2) More generally, sale of already i

Secondary Market
The market in which securities are traded after they are initially offered in the primary market. Mo

Secondary Mortgage Market
Buying and selling existing mortgage loans, which are often pooled and traded as mortgage-backed sec