Financy Glossary
The online dictionary of financial terms

rocket

1

Real Rate Of Return

The real rate of return is the amount of interest earned on an investment when inflation has been taken into account.

2

Recovery Shares

Shares that have fallen in value but are considered capable of recovering to previous levels, especially if the broader economy picks up.

3

Redemption Date

The date on which repayment or maturity of a bond or loan stock takes place.

4

Replacement Cost

The current terms cost of replacing one fixed asset with another.

5

Result Of Exercising Option

A term used by the London Stock Exchange to denote that a transaction was reported as a result of exercising a traditional or a negotiated option.

6

Result Of Stock Swap

A term used by the London Stock Exchange to denote that a trade was reported as a result of a stock swap or stock switch.

7

Round Lot

A trading lot that complies with the standard size for trading lots for that security type.

See also: Job Lot

8

Round Trip

The opening purchase or sale of a futures contract or options contract and the subsequent closing sale or purchase in the same contract.

When transaction costs for a futures contract or options contract are quoted, they are normally quoted on a round trip basis.

9

Run

A sustained period of selling which drives down the price of something, such as a security or commodity.

10

Run on the bank

In a fractional-reserve banking system, banks normally only keep a small proportion of the total deposited amounts in the form of cash that’s available for immediate withdrawal by bank clients.

A run on the bank (also known as a bank run) occurs when a large number of bank clients simultaneously withdraw or attempt to withdraw cash from their deposit accounts because they believe that the financial institution is or is about to become insolvent.

A run on the bank can quickly generate its own momentum and become a self-fulfilling prophecy. The more people that withdraw cash, the greater the likelihood of the bank actually becoming insolvent.

If many banks suffer from simultaneous bank runs, it is known as a banking panic.

A systemic banking crisis occurs when all or almost all of the banking capital in a country is wiped out.