Red ink is a slang term often used to describe financial losses, especially highlighted in financial statements where losses are marked in red for quick identification.
The term 'red tape' refers to the necessity to complete extensive paperwork to gain approval by several people in order to accomplish a goal. It is often associated with bureaucratic processes and inefficiencies.
Redacting involves preparing documents for publication or presentation by correcting, revising, or adapting the content. In contemporary usage, redaction often refers to obscuring private, confidential, or sensitive information in a document, such as a public record, to ensure it cannot be read. This process can be particularly challenging with electronic files.
Redeeming refers to various financial and legal acts of reclaiming or repurchasing something, such as cashing in a maturing note, bond, or curing a mortgage default.
A redeemable bond, also known as a callable bond, is a type of bond that the issuer can redeem before its maturity date at a predefined call price.
Redeemable shares are equity or preference shares in a company that the issuing entity has the right to buy back, under predetermined terms specified at the time of issue.
Redemption refers to the repayment of shares, stocks, debentures, or bonds as specified at the time of issue, often including a fixed redemption date and amount.
The redemption date refers to the specific date on which a bond or other fixed-income security is repaid by the issuer, fulfilling the terms of the debt agreement.
A redemption fee is a charge imposed for the repurchase or release of an asset from creditor claims, commonly used in mutual funds and other types of investments.
The redemption period is the duration during which a former owner can reclaim foreclosed property or property posted for foreclosure.
The redemption premium, also known as a call premium, is the amount over the par value that a bond issuer must pay an investor if the security is redeemed early.
The redemption price is the predetermined value at which a bond or preferred stock can be repurchased or redeemed by the issuer before its maturity date, commonly referred to as the call price.
Redemption yield, also known as yield to maturity, is a measure of the annual return an investor can expect to earn if a bond is held until maturity. It factors in both the bond's current market price and its interest payments.
Redevelopment is the process of demolishing existing structures and constructing new improvements on a site. The new improvements often differ significantly from the old structures.
Rediscounting refers to the process where a bank or financial institution sells short-term negotiable debt instruments, such as bankers' acceptances and commercial paper, which have already been discounted. This service involves the exchange of these instruments for a cash amount that has been adjusted to reflect the prevailing interest rate.
The rediscount rate is the interest rate charged to commercial banks and other depository institutions when they borrow funds from the Federal Reserve through its discount window.
Redlining is an illegal practice of refusing to originate mortgage loans in certain neighborhoods on the basis of race or ethnic composition. The term derives from the alleged practice of drawing a red line on a map around certain neighborhoods to designate them as off limits for loan approvals.
Reduced rates refer to prices that are lower than the standard or basic rate, frequently used as an incentive to attract new customers or through special allowances and discounts.
The reducing-balance method is a form of depreciation calculation that allocates a higher depreciation expense in the earlier years of an asset’s life and a lower expense in the later years.
A reduction certificate is a document in which the mortgagee (lender) acknowledges the sum due on the mortgage loan. It is typically used when mortgaged property is sold and the buyer assumes the debt.
A reduction of capital refers to the process whereby a company decreases its share capital, typically to return excess capital to shareholders or to write off losses. This action is governed by the Companies Act 2006 and requires specific resolutions and conditions to be fulfilled.
Redundancy refers to the intentional or unintentional repetition of computer data or the engineering support of a system's weakness. This practice enhances reliability and safety in various systems by providing backup or fail-safes.
The sum that an employee dismissed due to redundancy is entitled to receive from his or her employer under the Employment Rights Act 1996. It is based on the employee's age, years of continuous employment, and weekly pay.
Reengineering involves making major structural changes in a corporation or important business operations to improve efficiency and productivity.
Refers to words written on a cheque that is being dishonoured by a bank, typically due to insufficient funds or other specific issues such as bankruptcy or technical errors.
A quasijudicial officer appointed by a court for a specific purpose, to whom the court refers power and duty to take testimony, determine issues of fact, and report the findings for the court to use as a basis for judgment.
A bank nominated under the terms of a loan agreement to provide the marker rates for the purposes of fixing interest charges on a variable-rate loan.
A Reference Rate is an interest rate benchmark used as a basis for pricing financial products such as loans, mortgages, and derivatives. It is crucial for consistent pricing across financial markets.
A referral is a formal recommendation by one person to another, advising the use of a particular person, company, or service for specific needs. The term is commonly used in diverse professional contexts, such as business, healthcare, and employment.
Refi, short for refinanced mortgages, refers to the volume of mortgage loans originating from the refinancing of existing debt. This financial process involves replacing an existing mortgage with a new one, typically to achieve better interest rates, reduce monthly payments, or alter loan terms.
Refinancing involves obtaining new funding to pay off an existing obligation, typically done to secure a more favorable interest rate or reduce monthly payments.
Reformation is an equitable remedy consisting of a court-ordered revision of a contract to accurately reflect the true intentions of the parties involved, primarily used when the written terms do not match what was actually agreed upon.
Refresh in computing refers to the action of clearing part or all of a computer screen and redrawing it. It is commonly used to resolve issues such as web pages 'hanging' or not loading properly.
The process of returning cash or a check, typically by the IRS or state tax agency, when the taxpayer's withholding and estimated tax payments exceed their tax liability for the year.
A refundable credit is a tax credit that is paid to a taxpayer even if the amount of the credit exceeds the taxpayer's total tax liability. Notable examples include the Earned Income Tax Credit (EITC) and taxes withheld on wages.
Refunding refers to the process of issuing new securities to retire existing ones, aiming to extend the maturity period or reduce the cost of debt service, particularly in finance. In merchandising, it describes returning money to a dissatisfied customer.
A regional bank specializes in collecting deposits and making loans within a specific region of the country, differentiating it from money center banks which operate on a national and international level.
A regional shopping center is a substantial retail complex featuring 300,000 to 900,000 square feet of shopping space, anchored by at least one major department store. It is larger than strip, neighborhood, and community shopping centers but smaller than a super-regional center.
A Register of Charges is a statutory document maintained to record details of charges created by a company on its assets to secure debt. It is crucial for maintaining transparency and protecting creditor rights.
A list detailing individuals or entities holding debentures in a UK company, managed in accordance with specific regulations and available for public and stakeholder inspection.
A register listing the directors and secretary of a UK company, essential for maintaining statutory compliance and corporate transparency in accordance with the Companies Act 2006.
A statutory book where companies must document the interests of its directors in shares and debentures, accessible during the annual general meeting.
A statutory book that public companies are required to maintain, recording the interests of persons who have a 3% or greater interest in any class of the company's voting share capital.
The Register of Members, also known as a Share Register, is a mandatory list maintained by UK companies. It logs the company's members, providing essential details including their names, addresses, and shareholding status.
A registered auditor is a firm or individual eligible to carry out statutory audits in any member state of the European Union, in accordance with the Eighth Company Law Directive.
A registered bond is a type of bond that is recorded in the name of the holder on the books of the issuer or the issuer's registrar. It can be transferred to another owner only when endorsed by the registered owner. This is in contrast with a coupon bond.
A Registered Book-keeper is a professional certified by the International Association of Book-keepers (IAB), ensuring competency in managing financial records accurately and ethically.
Registered capital, also referred to as authorized share capital, is the maximum amount of share capital that a company is authorized to issue to shareholders as stated in its corporate charter.
A registered check is a type of check issued by a bank for a customer who sets aside funds in a special register. It is used when the customer specifies his name, the payee's name, and the amount to be transferred. Similar to a money order, a registered check is beneficial for individuals who do not have a checking account at the bank.
A registered company is a formal business entity that has been incorporated in England, Wales, or Scotland through a registration process with the Registrar of Companies. It can be a limited or unlimited company and may operate as either a private or public entity.
An investment company, such as an open-end or closed-end mutual fund, that files a registration statement with the Securities and Exchange Commission and meets all the other requirements of the Investment Company Act of 1940.
Registered Mail is a premium service provided by the U.S. Postal Service (USPS) that offers the safest way to send valuables through the mail. This service includes proof of mailing and delivery, with options for additional insurance and restricted delivery.
Coverage for damage or destruction of high-value property during shipments, often involving securities and money transfers. The insurance operates on an ALL-RISK basis, with common exclusions such as war, nuclear disaster, and illegal trade items.
In the United Kingdom, the term 'registered name' refers to the official name under which a company is incorporated. A company cannot be legally formed without this name, which must be included in its constitutional documents. There are specific legal restrictions and obligations regarding the use, change, and display of a company's registered name.
The registered office is the official address of a UK company, where all official correspondence should be sent, statutory registers are kept, and which must be disclosed on all company communications and annual returns.
A registered representative (RR) is an employee of a broker/dealer member of a stock exchange who acts as an account executive for clients.
A registered security is a financial instrument whose ownership is documented with the issuer or the issuer's agent. This contrasts with bearer securities where physical possession implies ownership.
A registered trader is a taxable person who has complied with the registration for value added tax (VAT) regulations. This compliance allows them to charge VAT on taxable supplies and reclaim any VAT they have paid on their purchases.
A registrar is an individual or official body responsible for keeping and maintaining the accurate records of an organization, institution, or legal entity. Their responsibilities vary depending on the field, such as education, real estate, and securities.
An official charged with the duty of registering all the companies in the UK. There is one registrar for England and Wales and one for Scotland. The registrar is responsible for carrying out a wide variety of administrative duties connected with registered companies, including maintaining the register of companies and the register of charges, issuing certificates of incorporation, and receiving annual returns.
Registration involves the official enrollment process applied in various contexts such as general enrollment, academic settings, and securities markets. In securities, it refers to the process set by the Securities Acts of 1933 and 1934 to ensure compliance and transparency.
In the USA, a registration statement is a lengthy document that must be submitted to the Securities and Exchange Commission (SEC). It contains all relevant information about a new securities issue, enabling potential investors to make informed decisions.
The Registry of Deeds is an officially maintained book that provides a place and mechanism for registering evidences of conveyances of interests in real property, so that constructive notice may be available to all third parties that there has been a change in the ownership of property effected by a conveyance of that property.
Regression analysis is a statistical technique used to establish the relationship between a dependent variable and one or more independent variables. It is widely used in various fields to predict future values and measure the significance of different factors.
A regression line is a line calculated in regression analysis that is used to estimate the relationship between two quantities, the independent variable and the dependent variable.
A regressive tax is a tax system where the tax rate decreases as the income of the taxpayer increases. This structure places more financial burden on lower-income earners relative to their income.
Regular-Way Delivery and Settlement refer to the standard procedure for completing a securities transaction at the purchasing broker's office on the third full business day following the trade date, as mandated by the New York Stock Exchange.
Commodities under the jurisdiction of the Commodity Futures Trading Commission (CFTC), which include all commodities traded in organized contract markets.
A regulated futures contract is a financial agreement that ensures daily settlement of gains or losses through margin accounts, and it must be traded on a qualified exchange following specified rules.
A regulated industry is one where the government imposes significant controls over its operations, pricing, profits, and sometimes even production methods, to ensure public welfare and market stability.
A Regulated Investment Company (RIC), such as a mutual fund or Real Estate Investment Trust (REIT), is eligible under Regulation M of the Internal Revenue Service to pass capital gains, dividends, and interest earned on fund investments directly to its shareholders to be taxed at the personal level, thereby avoiding double taxation on corporations and stockholders.
A Regulated Investment Company (RIC) is a type of investment company in the United States that is eligible to pass through income to shareholders without having to pay taxes at the corporate level, provided it complies with certain regulatory requirements outlined by the Internal Revenue Code.
Regulation refers to a set of rules or directives made and maintained by an authority (often a government agency) to administer and enforce a law. Regulations are essential for establishing standards, maintaining order, and ensuring compliance within various sectors including business, finance, and public safety.
Regulation D is a SEC regulation that provides a set of rules and conditions allowing exemptions for private placements of securities, helping companies raise capital without the full registration process.
Regulation T is a regulation enforced by the Federal Reserve Board that sets the minimum amount of credit that securities brokers and dealers can extend to customers for the initial purchase of regulated securities.
Regulation U is a rule of the Securities and Exchange Commission (SEC) that governs the maximum amount of credit that banks may extend for the purchase of regulated securities.
Regulation Z is a body of regulations promulgated by the Federal Reserve Board pursuant to the federal Truth in Lending Act (TILA), ensuring that borrowers are informed of the terms of credit, including the Annual Percentage Rate (APR) and the total cost of credit.
Official interpretations of the Internal Revenue Code (IRC) issued by the Treasury Department (IRS) that have the force and effect of law to guide taxpayers and tax professionals.
A regulatory agency is a government body tasked with the oversight, control, and supervision of specific activities or areas of public interest.
RNS or Regulatory News Service is a mechanism operated by the London Stock Exchange for the rapid dissemination of information relevant to listed companies, ensuring transparency and timely communication with investors and stakeholders.
Rehabilitation refers to the process of restoring something, such as a structure, to a good condition. It can be applied to various fields such as real estate, healthcare, and law, involving steps to improve, reconstruct, or repair.
The Rehabilitation Tax Credit encourages the preservation of historic buildings through tax incentives. It offers a 10% tax credit for the rehabilitation costs of certain older, non-residential buildings and a 20% tax credit for certified historic structures.
A payment made to an employee or another party to cover expenses or losses incurred. Common in corporate settings for expenses like travel and entertainment.
Reindustrialization refers to the process of revitalizing a former industrial area by means of recapitalization and the introduction of new technology. This process helps rejuvenate economies by modernizing infrastructure, reducing unemployment, and boosting productivity.
Reinstatement refers to the restoration of a lapsed insurance policy, typically due to the nonpayment of premiums after the grace period. This requires the policyholder to meet certain conditions.
Reinsurance is an agreement by which one insurer indemnifies another insurer in part, or in total, for the risks of a policy issued by that other insurer, helping manage and mitigate potential losses.
The interest rate at which an investor can reinvest earnings from an existing investment.
A related party is any person or entity that has a significant influence on a reporting entity, as defined in financial reporting standards. This influence does not necessarily equate to control. Proper identification and disclosure of related parties are crucial for financial transparency.
A related party transaction is an interaction between two parties where one party can exercise control or significant influence over the operating policies of the other, resulting from a special relationship such as between a business enterprise and its principal owners.
Related Party Transactions involve the transfer of assets, liabilities, or the performance of services between related parties, requiring specific disclosures and governance to ensure transparency and fairness.
The establishment of a long-term relationship between a bank and its corporate customers. The main advantage is that it enables the bank to develop in-depth knowledge of a company's business, which improves its ability to make informed decisions regarding loans to the company. The company expects to benefit by increased support during difficult times.
Relationship capital refers to the value created by a business's relationships with external parties, such as customers, suppliers, and partners. This concept is a subcomponent of intellectual capital, focusing on the trust, loyalty, and long-term connections that can enhance business performance.
Relationship marketing is a strategy designed to foster long-term relationships with customers, suppliers, and distributors, aiming to enhance overall profitability and business success.
A Relative Cell Reference in computer spreadsheet programs identifies the position of a cell in relation to another cell. When the reference is copied to a new location, it adjusts to refer to a cell in the same relative position.
A release can signify different forms of authorization or versioning across various fields such as general permissions, real estate, and computing software updates.
A clause in a mortgage that gives the property owner the privilege of paying off a portion of the mortgage indebtedness, thus freeing a portion of the property from the mortgage.
Release on Recognizance (R.O.R.) is a method by which an individual is released in lieu of providing bail, upon their promise to appear and answer a criminal charge.
The principle that financial information must influence decisions, offering predictive value or confirmation/correction of prior expectations. This concept is vital in both financial reporting and decision-making, encompassing relevant cost and relevant income.
Relevant accounts are those financial statements that should be used to determine the amount of distributable profit of a company. These accounts are the most recent audited annual accounts of the company, prepared in compliance with the Companies Act.
Relevant costs are expected future costs that vary with different courses of action a manager might take, making them essential for effective decision-making.
