Quarterly Report
A financial summary report that a company issues after the close of each of its fiscal year quarters.

 

Quick Ratio
This ratio is also called the acid test ratio and is similar to the current ratio, except inventories are subtracted from current assets before current assets are divided by current liabilities. An investor should be wary if the quick ratio is below 0.5, out of line with its industry, and/or showing a declining trend.

 

 

Quote
The highest bid to buy and the lowest offer to sell a security at a given time.

---

Rally
A sharp rise in the price of a stock or general market.

 

Record Date
The date by which an individual must be a registered shareholder in order to receive a declared dividend.

 

Red Herring
See Prospectus

 

Redemption Price
The price at which a bond may be redeemed before maturity at the option of the issuing company.

 

Raw Materials
Materials used to manufacture a product. Listed under inventories in a firm's balance sheet.

 

REIT
"Real Estate Investment Trust" is similar in organization to an investment company, but a REIT concentrates its holdings in real estate investments rather than in securities, such as stocks and bonds.

 

Restructuring Charge
A charge (expense) taken against earnings to cover the cost of "restructuring" a firm's operations. A restructuring often includes such items as closing unprofitable divisions or laying off employees.

 

Retained Earnings
A balance sheet account which shows the cumulative total of net earnings that were not distributed as dividends to shareholders. Also known as earned surplus.

 

Return On Equity
This calculation shows the rate of return that a company has achieved on shareholders' investment. A higher figure indicates a higher return. To calculate an average shareholders' equity figure, add the shareholders' equity amounts shown on the balance sheet for the current year and prior year together and divide by 2.

 

Revenues
The net sales of a company.

 

Rights
A limited-term option to purchase a security at a specific price.

 

Risk vs Return
Generally speaking, the higher the risk of loss, the greater the potential return. Conversely, the lower the risk of loss, the lower the potential return.

 

Round Lot
A unit of trading, generally 100 shares in stocks and $1,000 par value in bonds.