Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: R

RULE OF LAW

The predominance that is absolute of an ordinary law over every citizen regardless of that citizens power.

RUSSELL INDEXES

An equity that is weighted by market capitalisation that is published by the Frank Russell Company. Various indexes have been established such as the Russell 3000 index that measures the top 3000

RATE OF DEPRECIATION

The rate in which the value of a capital asset drops due to certain variables such as the wear and tear, physical deterioration or the technological obsolescence of the asset.

RATIONAL

1. Behavior guided by reasoning and not by emotions. 2. A Thinking process that uses logical, systematic methods in drawing a conclusion. 3. A person who can draw logical conclusions.

REACTION PLAN

A reaction plan is the action that is taken in a control plan when abnormal events or a non-conforming phenomenon have been detected.

REAL ESTATE INVESTING

Real estate bought purposely to earn an income versus using the residence as a primary place of residence. A real estate investor will purchase buildings with the intent to rent.

REASONABLE COST

Reasonable cost is a price that is consistent with what a reasonable person would pay in the same or similar circumstances for the same business or for the same or similar item.

RECENCY

Measure of the time elapsed since (1) an advertisement was last published, or (2) the last purchase was made by a customer, or (3) a commercial was last broadcast.

RECLAMATION

1. Commerce: Seller’s legal right to take back not paid for goods. 2. Land development: Conversion of unusable land into valuable real estate. 3. Recycling: Restoration of materials found in a waste

RECOURSE DEBT

A debt in which the borrower is not backed by any collateral. The lender can collect on the loan payments by way of foreclosure on the security and taking other assets.

RECURSION

This term refers to self reference: Application of a definition or principle to itself, such as analysis of the term analysis.

RED-LINING

A biased practice in which a risk is deemed uninsurable or charged a higher rate due to its locality

REFERENCE DOCUMENT

A type of document that outlines procedures as they relate to a particular activity. A reference document outlines the procedures undertaken during an activity to avoid missing steps the next time that

REFLEX EFFECT

Propensity of free and open markets to routinely return to a balanced state through price mechanisms, following attempts to maintain an unnaturally high or low price.

REGISTERED BROKER

This term relates to any broker that is registered with the SEC or on a particular exchange.

RELATIVE DENSITY

Relative density is the ratio of the density of a substance to the density of a given reference material. If a substance’s relative density is less than one then it is less

RELIANCE

A state were something or someeone is dependent on another being for support or other reason.

RENATIONALIZATION

Renationalization can be a risk investors see when investing in a foreign industry of a developing country. Developing countries might begin to privatize industries and assets previously under national control and allow

REPO

A contract in which the seller of securities, such as Treasury Bills, agrees to buy them back at a specified time and price. also called repurchase agreement or buyback. Or we can

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