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Stock Market Help

Here is a list of common financial terms. Click on the letter that corresponds with the first letter of the financial term to get the definition.

Regular Initial Minimum

The minimum dollar amount required to open a regular account with a given mutual fund.

Regular Subsequent Minimum

The minimum dollar deposit accepted for an existing regular account with a given mutual fund.

Regulation T

A regulation established by the Federal Reserve Board which covers the extension of credit to clients by securities brokers, dealers, and members of the national exchanges. It sets the initial margin requirement and defines eligible, ineligible, and exempt securities.

Regulation U

A U.S. government regulation that covers the lending of money by banks to their customers including brokerage firms.

Reinvest Distributions

In brokerage, feature where user requests that mutual fund distributions be reinvested in more shares, or instead paid in cash.

Rejected Order

Order which is invalid or unacceptable.

Reporting Dat

Test.

Return of Capital

For a long investment, when a portion of the quantity (for a bond) or net amount (for a stock) of an investment is returned to the buyer. Returns of capital are tax-exempt distributions and reduce cost basis of an investment to a maximum of zero. Below zero, any additional returns of capital are treated as capital gains distributions and are taxable.

Return on Equity %

The current fiscal years estimated earnings per share (EPS) divided by the book value per share.

Return on Investment

Return on investment gives you a return value for the life of the investment, not just a gain or loss, or the year-to-date return.

Right

A security granted to shareholders of a corporation to subscribe to new shares of common stock before it is publicly offered. It is usually transferable and may be traded in the open market.

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