R

Range

The difference between the highest and lowest price of a future recorded during a given trading session.

Rating

A grade - usually denoted by a letter or series of letters - signifying a security’s investment quality.

Real Estate Investment Trust (REIT)

An organization similar to an investment company in some respects but concentrating its holdings in real estate investments.

Recognised Clearing House (RCH)

In the UK, the Financial Services Authority has recognised and supervises a number of Recognised Clearing Houses (RCHs) under the Financial Services and Markets Act 2000. Recognition confers an exemption from the need to be authorised to carry on regulated activities in the United Kingdom. In order to be recognised, RCHs must comply with the recognition requirements laid down in the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001.

Recognised Investment Exchange (RIE)

In the UK, the Financial Services Authority has recognised and supervises a number of Recognised Investment exchanges (RIEs) under the Financial Services and Markets Act 2000. Recognition confers an exemption from the need to be authorised to carry on regulated activities in the United Kingdom. In order to be recognised, RIEs must comply with the recognition requirements laid down in the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001.

Recognised Overseas Clearing Houses (ROCH)

In the UK, the Financial Services Authority has recognised and supervises a number of overseas Recognised Investment exchanges (ROIEs), and has the power to recognise and supervise overseas Recognised Clearing Houses (ROCHs) under the Financial Services and Markets Act 2000 (FSMA). In order to be recognised, ROCHs must satisfy the requirements of S.292(3) of FSMA.

Recognised Overseas Investment Exchange (ROIE)

In the UK, the Financial Services Authority has recognised and supervises a number of overseas Recognised Investment exchanges (ROIEs), and has the power to recognise and supervise overseas Recognised Clearing Houses (ROCHs) under the Financial Services and Markets Act 2000 (FSMA). In order to be recognised, ROIEs must satisfy the requirements of S.292(3) of FSMA.

Record date

The date on which a shareholder must be registered as the owner of shares in order to be entitled to a dividend.

Redemption

The extinguishing of a debt through cash payment.

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 being that on which the last interest is due to be paid.

Reduced size market-maker

On the London Stock Exchange, a market-maker concerned primarily with retail business who has permission to display prices in reduced sizes on SEAQ.

Registered representative

The employee of a member firm who gives advice on which securities to buy and sell, and who collects a percentage of the commission income he or she generates.

Registrar

The registrar is responsible for keeping track of the owners of bonds and the issuance of stocks. Working with the transfer agent, the registrar keeps current files of the owners of a bond issue and the stockholders in a corporation. The registrar ensures that no more than the authorized amount of stock is in circulation. If the registrar and transfer agent are the same company, then there must be a Chinese Wall separating the functions.

Remisier

A self-employed stockbroker who gets commission for buying and selling for his own clients.

Renouncable documents

On the London Stock Exchange, temporary evidence of ownership, of which there are 4 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 capitalisation 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/she wishes to have the newly issued shares registered in his/her name, or if he/she wishes to renounce them in favour of somebody else.

Report

A premium on carrying over a position on a French equity from one settlement period to the next.

Reverse split

The reduction in a corporation’s outstanding common stock. This is accomplished by replacing outstanding common stock by fewer shares and increasing the stated or par value per share. The total number of shares will have the same market value immediately after the reverse split as before.

Reverse-crush spread

The spread between soya beans and soya-bean products created by buying soya-bean oil and soya-bean-meal futures and selling soya-bean futures.

Rights issue

An offer of securities to existing shareholders by a company in proportion to their existing holdings.

Ring

An area on a trading floor where futures or equities are traded.

Risk factor

The risk factor (delta) indicates the risk of an option position relative to that of the related futures contract.

Risk premium

The expected additional return for making a risky investment rather than a safe one.

Road show

A series of meetings with potential investors in key cities, designed and performed by a company and its investment banker as the company prepares to go public.

Rolling over

The substitution of a far option for a near option of the same underlying stock at the same strike/exercise price.

Round lot

(i) For stocks, a unit of trading, usually 100 shares.
(ii) For futures, an amount of a commodity equal in size to the futures contract for that commodity.

Round trip

Buying and selling of a futures or options contract.