Rabobank refers to the Dutch banking giant whose full name is the Coöperatieve Rabobank. This Dutch international banking giant is a full-scale financial services organization whose headquarters today lies in the city of Utrecht in the Netherlands. The banking group is a world leader for agriculture and food production financing as well as in banking based on sustainability. Their motto [...]

In the worlds of finance and business, the rate of return, also known by its acronym ROR, proves to be the ratio of money lost or gained pertaining to an investment and the sum of money that is originally invested in it. This rate of return is also called the rate of profit or more commonly the return on investment, [...]

Real estate turns out to be a phrase that is used legally to describe property and the structures on such property. It refers to the land and the residential, commercial, or industrial structures on the land. Other improvements to the property can also be covered by the term, such as wells, fences, and other immobile objects fixed on the property. [...]

Real estate appraisal refers to the procedure where an expert real estate appraiser creates a professional opinion on the value of a house, land, or other real property. It is also called land valuation and property valuation. The value the appraiser comes up with is typically the market value for the house or land in question. Many times real estate [...]

A Real Estate Broker refers to a middle man intermediary individual who acts as the go- between with buyers and sellers of real property. They attempt to match up buyers who want to purchase a property with sellers who wish to sell. The English Common Law of Agency referred this position into existence in the United States. The broker is [...]

A Real Estate bubble occurs as housing prices rise because of increased speculation, actual legitimate demand, and irrational exuberance all working in concert. These bubbles generally begin because of a legitimate rise in demand for housing and Real Estate at the same time as the housing supply is quite limited. Because of this limit in supplies, it needs quite a [...]

Real Estate Investment Trusts are also known as REITs. These turn out to be investment companies which finance or outright own real estate that produces income. REITs were created along the model of mutual funds. They give all levels of investors the access to the benefits that real estate typically provides. This includes diversification, income streams, and capital appreciation longer [...]

A recession is literally defined as the declining of the nation’s GDP, or Gross Domestic Product, by a smaller amount than ten percent. This drop in GDP has to occur over greater than a single consecutive quarter in a given year. Gross domestic product stands for the total of all goods and services that a country produces, or the actual [...]

Reconciliation refers to an accounting process. Its chief defining characteristic is that is employs two different records in order to make sure that the figures it portrays are both identical and accurate. This critical process ensures that money going out of an account measures accurately against the amount actually spent. In other words, it assures accountants that the two values [...]

When the word refinance is used, it is referring to the act of refinancing, or canceling out a currently existing debt with another debt that a bank or refinance company issues under alternative terms. By far and away the most popular refinancing that pertains to consumers is for mortgages on houses. Debt replacements that are performed in conditions of financial [...]

A refinancing boom refers to the points in the market where the share of the refinance mortgage applications is greater than 50% of the total applications. This is the definition that home lending agency giant Freddie Mac employs. They determine both the start and the end of ref booms based on this 50% of MBA’s survey figure for the weekly [...]

Regressive taxes are those which exact a greater percentage in income off of the lower income wage earners than they do from the fortunate higher income earners. This stands in direct contrast to a  progressive tax that instead grabs a bigger percentage of taxes from the higher and highest income wage earners. A regressive tax is typically one which is [...]

Regulatory Compliance refers to companies choosing to incorporate standards that meet certain government requirements. It could also be thought of as the specific set of regulations which a firm has to observe when it meets the given requirements. Because of the ever growing burdens of regulations, companies are increasingly finding they must become more transparent operationally. This is why they [...]

A repayment penalty is commonly associated with paying back a loan before the end of its term. If you are contemplating paying off your loan balance in advance of its due date, then you should be aware that a number of loans come with these repayment penalties for liquidating the balance early. Different types of loans utilize different names for [...]

A repayment split refers to the ways that payments are allocated on a split mortgage. These repayment splits might allow you to take out a mortgage where part of the loan is a fixed rate loan, while the remainder of the loan is a variable rate, set against a tracking rate for the life of the loan. Home buying borrowers [...]

Repossessed means that an article of personal (or occasionally business) property for which an individual (or business) did not pay for has been reclaimed by the financier or original owner of the asset. There are two cases in which it is commonly utilized. The first is when the real owner of said asset re-acquires the asset in question from the [...]

Representative money refers to any form of exchange that stands for a backing store of value. Yet this representing money itself usually has little to no value intrinsically, or by itself. This is a different concept from fiat money which might or might not possess a valuable store underlying it. For money to be legitimate representative money, it must have [...]

Repurchase agreements refer to types of short term time borrowing. It is the government securities dealers who engage in them. The appropriate dealer will first sell such government securities to institutional investors or financial institution investors. They usually do this for overnight. After this, they will purchase them back the next day. Those parties who sell the security and agree [...]

The Required Minimum Distribution is a concept that pertains to retirement accounts and IRS rules which govern their distributions. Many individuals are not aware that they can not simply choose to hold retirement money in their retirement vehicle forever. They must begin accepting withdrawals from their traditional IRA, SEP IRA, Simple IRA, or other type of retirement plan and account [...]

Reserve currency proves to be that particular currency which central banks (and sometimes important international financial institutions) hold. They keep such currency so that they are able to have an influence on their own country’s exchange rate or to pay down their debt obligations which are international in nature. A substantial number of global commodities remain priced according to the [...]

The reserve requirement proves to be the quantity of funds which banks are required to hold on hand each and every night. This is expressed as a percentage of the bank’s total demand deposits. A country’s central bank is responsible for setting out the effective percentage rate. Within the United States, it is up to the Federal Reserve’s Board of [...]

Residual refers to residual income. Residual income can have several different meanings depending on the context that you use. For an individual, residual income proves to be the money that remains at the end of a month after all financial responsibilities for the month are covered. These include living costs, taxes, and housing costs. Where business is concerned, residual incomes [...]

Resource Holdings, also known as Resource Land Holdings and RLH, is a private equity firm which focuses on purchasing huge pieces of real estate which are rich in natural resources. The company’s ultimate goal with these acquisitions is to sell off those parts of the properties that do not generate cash flow so that they can reduce the cost basis [...]

Restricted Stock refers to those company stock shares which prove to be unregistered. These are typically issued out to affiliates of the corporation such as the directors, board, company insiders, and company executives. Because this stock class is non-transferable, it can only be traded as those SEC special regulations set out. This stock class is often referred to as letter [...]

Retail banking is also called consumer banking. This form of banking is most easily described as the common everyday activities of financial service firms. In this definition their individual clientele utilize the local area branches of the more significant and bigger commercial banks. They provide a wide range of services to their customers through this division of financial services. These [...]

Retained earnings are a component of the earnings categories of corporations. They describe the portion of a company’s net earnings that they do not give out to shareholders as dividends. Instead these earnings are kept by the firm so that they can pay down debt or reinvest in their core operations and business model. Balance sheets note earnings which are [...]

Return on Assets is also known by its acronym ROA. It is also sometimes called return on investment. This proves to be an indicator of a company’s profitability compared to its aggregate asset base. With ROA, investors and analysts can learn about the big picture of the efficiency of an organization’s management compared to the deployment of their company assets [...]

Return on equity proves to be a useful measurement for investors considering a given company. This is because it takes into account three important elements of a company’s management. This includes profitability, financial leverage, and asset management. Looking at the effectiveness of the management team in handling the three factors gives you as an investor a good picture of the [...]

ROI is the acronym for return on investment. This return on investment is among the most often utilized methods of determining the financial results that will arise from business decisions, investments, and actions. ROI analysis is used to compare and contrast both the timing and amount of investment gains directly with the timing and amount of investment costs. Higher returns [...]

Revenue refers to the amount of money which firms generate in receivables within a certain time frame. It includes deductions for merchandise which is returned as well as any applicable discounts. This is also known as the gross income or sometimes the “top line” amount. Net income can be figured out by subtracting the costs from the revenue. Analysts and [...]

Revenue Bonds are municipal bonds. Their payments on principal and interest come from a special project’s revenue. This could be from a highway toll, toll bridge, or area stadium receipts. Whatever the specific project may be, its revenues are what support the underlying bond issues. These revenue bonds are utilized to finance projects which will eventually produce income for the [...]

A reverse annuity mortgage has several different names. Industry insiders call them reverse mortgages or home conversion loans. The government and finance companies created them to assist retirees who find themselves in a condition of being rich in assets but poor in cash. There has become a greater need for this type of product as more and more individuals find [...]

Reverse mortgages are special types of loans. They are limited to homeowners who are at least 62 years old. These mortgages permit the owners to take a portion of their home equity and convert it to cash. The seniors may use these mortgage proceeds in any way that they like. The government came up with these unique products because they [...]

A reverse split is also known as a reverse stock split. Reverse splits are used to reduce the total outstanding number of a given company’s shares. This action boosts the value of its stock and the resulting earnings per share. Not everything concerning a stock changes in a reverse stock split. One thing that remains the same is the market [...]

Revolving Credit refers to lines of credit that customers draw on and then make payments on to their creditors. In order to have such a facility, the debtor must pay a commitment fee. This enables them to utilize the funds on an as-needed basis. Such a facility is typically deployed for operating expenses. It would therefore vary every month according [...]

Richard Cordray worked as the first director for the new federal agency the Consumer Financial Protection Bureau, often referred to by its acronym CFPB. Before his appointment he headed the Office of Enforcement. In the years in advance of his coming to work for the bureau, he led the battle lines of consumer protection in his role as Attorney General [...]

Richard Dennis was a long time commodities trader who earned the nickname the “Prince of the Pit.” Born in 1949 in Chicago, Illinois, he borrowed $1,600 from family and turned it into $200 million within ten years. He became more legendary still when he embarked on a famous experiment to teach ordinary people with no trading backgrounds how to trade. [...]

Right of First Refusal refers to a right, but not an obligation, to enact a transaction regarding an asset with another party ahead of any competitors. It is similar to possessing a particular call option on the asset in question. Such a contractual right will typically be negotiated after a party to a transaction wishes to first see how its [...]

Risk arbitrage is also known as statistical arbitrage. It is different from pure arbitrage as it involves risk or speculation. It is also far more accessible to retail traders than real arbitrage. Because of the reasonably high probability that risk arbitrage offers traders, experts generally consider it to be playing the odds. Despite the risk involved, this form of arbitrage [...]

Risk averse investors are those who fear or are intolerant of risk. Given a chance to pick from two investments with similar returns they will go with the one that offers the lesser risk. This is because risk averse investors do not like risk. Because of this they will avoid investing in stocks and other investments that they consider to [...]

Risk Management refers to the identifying, calculating, analyzing, and prioritizing of risks. When used here, risks mean the effect of uncertainty on objectives, as the ISO defines in its ISO 31000. These risks must then be dealt with in such a manner as to lessen the impact of them. This is done through deploying resources in order to monitor and [...]

A risk premium turns out to be the surplus return over the risk free rate of return which investments are anticipated to provide. Any asset offers such a premium as a means of rewarding those investors who are willing to take on the additional risk as opposed to an asset which is risk free. Examples of this abound. Excellent credit [...]

Risk-Weighted Assets refer to those which are utilized to decide on much capital financial institutions like banks must hold in order to decrease the chances of becoming insolvent. Regulators determine the capital amount required using a complicated risk assessment of every individual kind of asset the bank holds. As a simple example, the loans which have been secured by only [...]

The 1920s were the original national era of irrational exuberance. In this decade, huge numbers of Americans believed that they could earn enormous fortunes in the stock markets. They ignored the fact that the markets could be volatile. This allowed them to justify investing all of their life savings in stocks. Those who did not have savings were able to [...]

Robert Kiyosaki is the internationally acclaimed best selling author of the wildly successful book Rich Dad, Poor Dad. This book is considered to be the bestselling financial self help book of all time. It held a top place on the gold standard of publishing the New York Times bestseller list for more than six years. Fourth generation Japanese American and [...]

An IRA is the acronym for Individual Retirement Account. These accounts represent a form of government-approved and -created savings account for retirement. They have several advantages, the main one of which is the significant tax breaks they receive in tax deferment. This makes them the optimal way to put cash aside towards eventual retirement. It is important to know that [...]

A Roth IRA is a particular type of Individual Retirement Account. These Roth IRA’s prove to be special retirement plans that are given favorable tax treatment. The tax laws of the United States permit tax reductions on restricted amount savings for retirement accounts. Roth IRA’s are different from other IRA’s in several ways. Among the chief of these is that [...]

Royalties are payments which owners receive in exchange for the use of their property. This most typically covers natural resources, franchises, patents, and copyrighted works. Royalty payments go to the property in question’s legal owner. Individuals who want to utilize the owners’ patents, property, franchise, natural resources, or copyrighted works will do so with the intention of creating a revenue [...]

Rudolf von Havenstein was the Central Bank Governor of Germany before, during, and following World War I. Though he served his country in this capacity for fully 15 years, he is generally remembered as the architect of Germany’s disastrous hyperinflation during the years from 1921 to 1923. Havenstein’s name is often invoked today as a cautionary tale to central bankers [...]

A run on the bank is the vernacular expression for a bank run. Runs on the banks actually happen as a result of many bank customers deciding to take out their deposits at one time. They do this out of fear that the bank is either broke or on its way to becoming insolvent. When runs on the banks get [...]

The Run Rate refers to a company or corporation’s financial performance. It utilizes the present financial information in order to forecast the firm’s future time frame performance. This then allows analysts and accountants to extrapolate going forward based upon the present day financial performance. Naturally this rate takes as a granted the belief that the current financial conditions for the [...]

The Russell 2000 Index represents a British-based American stock market index which measures the actual price performance of around 2,000 small cap companies located in the United States. It is actually a portion of the far larger capitalized Russell 3000 Index, comprised of the 3,000 largest American stocks. The Russell 2000 still equates to the major benchmark for the United [...]