Archives: Terms

Definition of Rights Issue A rights issue is a method by which companies raise additional capital by offering existing shareholders the right to purchase additional shares at a discounted price. This offer typically comes in proportion to the number of shares that the shareholders already own. For instance, if you […]

Definition of Right-Hand-Side Variable The term right-hand-side variable refers to any independent variable included within a statistical model, typically within the context of regression analysis. In a regression equation, the right-hand side consists of the explanatory variables that are used to predict or explain changes in the dependent variable, which […]

Definition of Ridge Regression Ridge Regression is a type of linear regression that addresses multicollinearity among predictor variables. This technique involves adding a degree of bias to the regression estimates, which is done through a process called regularization. The main idea is to penalize the size of the coefficients, with […]

Definition of Revolving Loan A revolving loan is a type of credit that does not have a fixed number of payments, in contrast to installment loans. It allows the borrower to use funds up to a specified limit, repay the amount used, and borrow again, all according to the terms […]

Definition of Reverse Yield Gap Reverse Yield Gap is a financial phenomenon where the dividend yield on a stock or group of stocks exceeds the yield on government bonds. This situation is contrary to the typical or “normal” yield gap wherein bond yields are usually higher than stock dividend yields, […]

Definition of Reverse Takeover A reverse takeover (RTO), also known as a reverse merger or reverse acquisition, is a type of corporate transaction in which a private company acquires a public company. This process allows the private company to become publicly traded without going through the traditional and often lengthy […]

Definition of Revenue Tariff A revenue tariff is a type of tariff imposed primarily to generate income or revenue for the government rather than to protect domestic industries. This usually involves placing a tax on imported goods, thereby increasing the price of these goods in the domestic market. Unlike protective […]

Definition of Revaluation Revaluation refers to the process of adjusting the value of an asset to reflect its current market value, particularly in the context of fixed assets and currencies. In the realm of finance and accounting, revaluation is used to ensure that the recorded values of assets are up-to-date […]

Definition of Returns Returns refer to the gains or losses derived from an investment over a certain period. These returns can take the form of capital appreciation, dividends, interest, and other forms of income distributions. They are usually shown as a percentage of the initial investment amount. Whether one is […]

Definition of Return Return, in the context of investing, refers to the gain or loss of an investment over a specific period of time. It is often expressed as a percentage and can be calculated on various types of investments such as stocks, bonds, real estate, or any other financial […]