Page 143 - PRIAA Glossary

RESTING ORDER
A limit order to buy at a price below or to sell at a price above the prevailing market that is being held by a floor broker. Such orders may either be day orders or open orders.
RESTRUCTURING
A credit event that occurs when a reference entity restructures the terms of some or all of its debt obligations in agreement with its creditors resulting in the deterioration in the creditworthiness of the reference entity. Common restructuring events include debt for equity swaps, extensions to the maturity date or reductions in principal or interest payable. See also “credit event”.
RETAIL INVESTMENT ADVISOR (RIA)
A person or firm regulated by the Securities and Exchange Commission (SEC) or a states’ security agency that provides investing advice or counsel to an investor. RIAs receive compensation for giving advice on investing in securities.
RETRACEMENT
A temporary reversal in the trend of a security’s price. Typically a retracement is a short-term sell-off before a longer-term uptrend resumes.
RETURN ON EQUITY
A measure of the net earnings over the shareholders’ equity within a company. This measure may be interpreted as a company’s ability to generate earnings on capital invested for the shareholders.
REVERSE FLOATER
An interest rate swap where the floating rate has a coupon which rises when the underlying floating rate falls. When the market floating rate falls, the payout increases. Reverse floaters offer guaranteed principal and are an option for investors looking to benefit from falling interest rates.
141
R