The Law Dictionary

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

Category: R

RETURN PERIOD

The time a stock currency or commodity is held in order to produce profit when sold.

RHO

The relative change in the cost of an option making it a risk free rate holding all other variables constant. Refer to delta, gamma, theta, greeks, and vega.

RISK PHILOSOPHY

A firms formal take on corporate goals, activities, and stakeholders expectations regarding risk activities. Refer to risk tolerance.

ROLLER COASTER

When a variable rate of interest is exchanged for a fixed rate of interest to accommodate flexibility between two terms experiencing different financial needs. Refer to variable principal swap.

RATESENSITIVE LIABILITIES

Liabilities of a bank that are exposed to interest rate changes. Refer to asset liability management and ratesensitive asset.

RECOVERY RATE

The percent a creditor or claim gets after a bankruptcy is filed. Refer to loss given default and recovery.

REINSTATEMENT

Reactivating insurance cancelled due to nonpayment. The insurance company has the right to charge a higher premium.

REPRICING RISK

The chance that an asset will be reinvested at a less than favorable rate. This can cause great loss. AKA refinancing risk or reinvestment risk. Refer to negative gap, positive gap, ratesensitive

RESTRICTED RETAINED EARNINGS

A sum of retained or restricted surplus placed in an account that can only be used to pay in the event that the investor has arrears from a breach of covenant or

REVENUE BOND

A loan given to a municipalities project that is repaid by revenue from the project itself such as a toll road. Refer to general obligation bond.

RICH

When a holding is at its highest price and a firm will benefit from selling it.

RISK POOLING

The concept that the level of risk can be reduced by combining uncorrelated risks. AKA pooling.

ROLLING DOWN THE CURVE

Gaining capital by purchasing and holding longterm bonds in the event of declining yields. AKA riding the curve.

RESIDUARY DEVISEE

The person named in a will, who is to take all the real property remaining over and above the other devises.

REASONABLE DILIGENCE

A fair, proper, and due degree of care and activity, measured with reference to the particular circumstances; such diligence, care, or attention as might be expected from a man of ordinary prudence

REGULAR ELECTION

A general, usual, or stated election. When applied to elections, the terms “regular” and”general” are used interchangeably and synonymously. The word “regular” is used in reference to a general election occurring throughout

RACHIMBURGII

In the legal polity of the Salians and Ripuarians and other Germanic peoples, this name was given to the judges or assessors who sat with the count in his mallum, (court.) and

RANK

The order or place in which certain officers are placed in the army and navy, in relation to others. Wood v. U. S., 15 Ct. CI. 158.

RATIHABITIO

Lat. Confirmation, agreement, consent, approbation of a contract. Saltmarsh v. Candia, 51 N. II. 76. Ratihabitio mandato scquiparatur. Ratification is equivalent to express command. Dig. 46, 3, 12, 4; Broom, Max. 867;

RE FA EO

The abbreviation of “re- cordari facias loquelam,” (q. v.) Re, verbis, scripto, consensu, tradi- tione, junctnra vestes sumere pacta solent. Compacts usually take their clothing from the thing itself, from words, from

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