The role of this glossary is to present brief definitions of most of the key concepts in corporate finance and management (in total 900 names-definitions) with aim the reader to be able to understand and become familiar with the terminology in the analyses that will present in the category Corporate & Business.
Additionally, we hope that the reader by acquiring intimacy with the specific terminology, he will also love the science of finance and management, giving to it a significant part of his personal time.
In the following glossary we tried to include the most well-known definitions and terms in the field of Corporate Finance & Management. If you still find that a term or definition is missing and you know that it can be included in this glossary, please do not hesitate to contact us via the contact form of our web-site (Contact Us) and the Liberal Globe will edit it and will include it.
Glossary Corporate Finance & Management
There are currently 49 names in this directory beginning with the letter R.
R squared (R2)
square of the correlation coefficient-the proportion of the variability in one series that can be explained by the variability of one or more other series.
Rationality
analysis requiring a clear goal, a clear understanding of alternatives by which a goal can be reached, an analysis and evaluation of alternatives in terms of the goal sought, needed information and a desire to optimize.
Real interest rate
interest rate expressed in terms of real goods i.e. nominal interest rate adjusted for inflation.
Recapture of depreciation
the amount of prior depreciation which becomes taxable as ordinary income when an asset is sold for more than its tax basis.
Record date
is the date set by directors when making dividend payment. Dividends are sent to stockholders who are registered on the record date.
Recourse
term describing a type of loan. If a loan is with recourse, the lender has a general claim against the parent company if the collateral is insufficient to repay the debt.
Recruitment of managers
attracting candidates for managerial positions in order to meet the objectives of the enterprise.
Redistribution hypothesis
a theory that value increases in mergers represent wealth shifts among stakeholders (i.e. a wealth transfer from bondholders to shareholders) rather than real increases in value.
Regulation an issue
security issues of under $1,5mlns; partially exempt from SEC registration requirements.
Repurchase Agreement (RP, Repo, buy-back)
purchase of Treasury securities from a securities dealer with an agreement that the dealer will repurchase them at a specified price.
Residual analysis
the examination of assets returns to determine if a event has caused the return to deviate from a normal or predicted return which would have resulted if the event had not taken place. The difference between the actual return and the predicted return is the residual.
Responsibility
the obligation owed by subordinates to their superiors for exercising authority delegated to them in a way to accomplish results expected.
Responsibility (absoluteness)
the concept that, since responsibility is an obligation owed, it cannot be delegated.
Return-on-investment control
a control technique designed to measure a division or other part of a business enterprise by looking on the profit made as a percentage of the investment in assets in that entity.
Reverse FRN (bull FRN, yield curve notes)
floating-rate note whose payments rise as the general level of interest rates fall and vice versa.
Reverse LBOs
firms or divisions of firms, which go public again after having been taken private in a leveraged buy-out transaction.
Rights issue (privileged subscription issue)
issue of securities that is offered to current stockholders.
Risk analysis
an approach to problem analysis which weighs risk in a situation by introducing probabilities to give a more accurate assessment of the risks involved.
Risk-free rate
the return on an asset with no risk of default. In theory, the return on short-term government securities.
Roll-out MLP
also called spin-off MLP. A corporation transfers some of its assets to an MLP to avoid double taxation, i.e. MLP units are initially distributed to corporate shareholders, and corporate management serves as the general partner.
Roll-up MLP
the combination of several ordinary limited partnerships into a master limited partnership.
Royalty trust
an organizational form used by firms which would otherwise be taxed heavily (due to declining depreciation and increasing pretax cash flows) to transfer ownership to investors in low tax brackets.
