Investing glossary
Plain-language definitions of the investing terms you meet in filings, in the news and in Finzer.
28 terms, all of them on this page
R
Rate of Return
Rate of return measures how much money you made or lost on an investment, expressed as a percentage of what you put in. Learn how to calculate it, compare it across assets, and avoid the traps that mislead investors.
Rating Agency
A rating agency evaluates the creditworthiness of borrowers and assigns letter-grade credit ratings to bonds, companies, and governments. Learn how ratings are determined, why they move markets, and how investors should actually use them.
Real Estate Investment Trust (REIT)
A Real Estate Investment Trust (REIT) is a company that owns or finances income-producing real estate and must distribute at least 90% of taxable income to shareholders. Learn how REITs work, why investors use them for income and diversification, and how to analyze them properly.
Real GDP
Real GDP measures the total value of goods and services an economy produces, adjusted for inflation. Learn how it’s calculated, why investors track it, and how to use it in real decisions.
Real Return
Real return is the percentage gain or loss on an investment after adjusting for inflation. Learn how to calculate it, why it matters more than nominal returns, and how to use it in real portfolios.
Recession
A recession is a broad economic downturn marked by declining GDP, rising unemployment, and weakening consumer demand. Learn what causes recessions, how they affect markets, and what smart investors actually do.
Recovery Rate
A recovery rate is the percentage of an investment or loan that investors recover after a default or bankruptcy. Learn how recovery rates work, what drives them, and how to use them in real-world investing decisions.
Recurring Revenue
Recurring revenue is predictable income a company generates repeatedly from the same customers, usually via subscriptions or long-term contracts. Learn why investors prize it, how to analyze it, and when it really matters.
Relative Strength
Relative strength measures how a stock or asset performs compared to another asset or benchmark over time. Learn how investors use it to spot leaders, manage risk, and avoid laggards.
Relative Strength Index
The Relative Strength Index (RSI) is a momentum indicator that measures the speed and magnitude of price moves on a 0-100 scale. Learn how traders use RSI levels to spot overbought, oversold, and trend-shift opportunities.
Return on Assets
Return on Assets (ROA) measures how efficiently a company generates profit from its total assets. Learn how to calculate it, what drives it, and how investors actually use it.
Return on Assets (ROA)
Return on Assets (ROA) measures how efficiently a company generates profit from its total assets. Learn how to calculate it, interpret it, and use it to spot capital-efficient businesses.
Return on Equity
Return on Equity (ROE) measures how efficiently a company turns shareholder capital into profit, calculated as net income divided by equity. Learn how to interpret ROE, what drives it, and how investors actually use it.
Return on Equity (ROE)
Return on Equity (ROE) measures how efficiently a company generates profit from shareholders’ equity. Learn how to interpret ROE, what drives it, and how investors actually use it.
Return on Invested Capital
Return on Invested Capital (ROIC) measures how efficiently a company turns invested money into operating profits. Learn how to calculate it, what good ROIC looks like, and how investors actually use it.
Return on Investment (ROI)
Return on Investment (ROI) measures how much profit or loss you make relative to the amount you invested. Learn how to calculate it, what drives it, and how investors actually use it in practice.
Return on Sales
Return on Sales measures how much operating profit a company generates from each dollar of revenue. Learn how to calculate it, what drives it, and how investors actually use it.
Revenue
Revenue is the total money a company earns from selling its products or services before any costs are deducted. Learn how investors analyze revenue growth, quality, and sustainability.
Reverse Stock Split
A reverse stock split consolidates a company’s shares to raise the stock price without changing its market value. Learn why companies do it, how it works, and what investors should actually do.
Risk
Risk is the chance that an investment’s actual outcome will differ from what you expect, including the possibility of losing money. Learn how different types of risk work, what causes them, and how smart investors manage-not avoid-them.
Risk Aversion
Risk aversion is the tendency of investors to prefer lower, more certain returns over higher but uncertain ones. Learn how it shapes markets, portfolios, and smart investing decisions.
Risk Management
Risk management is the process of identifying, measuring, and controlling potential losses in an investment portfolio. Learn how it works, why it matters, and how smart investors use it to survive bad markets and compound over time.
Risk Parity
Risk parity is a portfolio strategy that allocates assets so each contributes an equal amount of risk, not capital. Learn how it works, why institutions use it, and how investors can apply it.
Risk Profile
A risk profile is an investor’s quantified tolerance and capacity for losses, often expressed as conservative, moderate, or aggressive. Learn how it’s built, what drives it, and how to actually use it to make better investment decisions.
Risk Tolerance
Risk tolerance is how much investment volatility and potential loss an investor can stomach before changing behavior. Learn how to assess it, what drives it, and how to use it to build a portfolio you can actually stick with.
Risk-Adjusted Return
A risk-adjusted return measures how much return an investment generates relative to the amount of risk taken. Learn how to evaluate performance properly, compare investments, and avoid misleading gains.
Risk-Free Rate
The risk-free rate is the theoretical return you can earn with zero default risk, typically approximated by short-term U.S. Treasury yields. Learn how it shapes valuations, portfolio decisions, and expected returns.
Risk-On / Risk-Off
Risk-on/risk-off describes shifts in investor behavior between seeking growth assets and prioritizing safety. Learn what drives these swings and how to position your portfolio.