Growth Investing Stock Market Glossary
From A for ‘Asset’ to Z for the ‘Zero-Coupon Yield Curve’ — your comprehensive guide to everything that matters in the markets.
R-Squared (R²)
Proportion of the return variance explained by a regression model; measure of explanatory power.
Ratchet
Conditional adjustment mechanism for participation rates or compensation upon achievement of targets.
Rate Of Change (ROC)
Momentum indicator that measures percentage price changes over a period.
Rating agency
Institution zur Bewertung der Kreditwürdigkeit von Staaten, Unternehmen und Strukturen.
Rating outlook
Assessment of the future rating trend such as "positive," "stable," or "negative."
Ratio Spread
Option strategy with different number of contracts per strike to manage volatility and directional risks.
RBA (Reserve Bank Of Australia)
Central bank of Australia responsible for monetary policy and financial stability.
Real Effective Exchange Rate (REER)
Exchange rate measure taking into account trade weights and inflation differentials.
Real interest rate (real interest)
Nominal interest rate minus inflation rate as a measure of purchasing power change.
Real yield
Return after deduction of inflation; measure of real value development.
Realized volatility
Measured volatility based on historical prices over a period of time.
Rebalancing
Restoration of the target weights of a portfolio through purchases and sales.
Rebate price adjustment
Adjustment when changing the price leader to avoid distortions.
Rebound (Technique)
Counter-movement after a sharp price drop, often referred to as a temporary recovery.
Recency Bias
Tendency to overemphasize recent information and underestimate long-term aspects.
Record Date (Stichtag)
Date that determines entitlement to dividends or rights.
Recording obligations
Regulatory requirements for the documentation of orders, phone calls, and customer communication.
Recovery Rate (Verwertungsquote)
Share of the claim that is realized after a debtor defaults.
Redemption spread
Difference between issue price and redemption price of fund units as a measure of cost.
Reference interest rate
From today's perspective, agreed interest rate for a future interest period.
Reference price
Reference price for orientation of price determination in auctions or floor trading.
Referenzzinssatz
Key interest rates such as €STR, SOFR, or EURIBOR as the basis for contracts and valuations.
Refinancing gap (Funding Gap)
Difference between due payments and available sources of financing.
Refinancing risk
Risk of being unable to renew due liabilities only on unfavorable terms or not at all.
Registered Share
Stock whose owner is registered in the stock register and thus remains identifiable.
Regression
Statistical method for explaining a target variable through influencing variables.
Regulatory capital
Capital required by supervisory authorities to absorb losses.
Rehydration (Re-Dilution)
Renewed dilution of existing shares through additional capital measures.
Reinsurance
Securing obligations through appropriate assets or insurance.
Reinsurance
Transfer of risk from an insurer to a reinsurer to smooth out results.
Reinsurer
Insurer that assumes risks of other insurers in exchange for premiums.
Reinvestment
Use of distributions for the repurchase of the same or other assets.
Reinvestment risk
Risk of being able to reinvest distributions only at worse interest rates or returns.
REIT (Real Estate Investment Trust)
Real estate vehicle with a focus on distributions and special tax rules.
Relative Strength
Relationship or ranking measure of the performance of a security compared to benchmark or peers.
Relative Strength Index (RSI)
Oscillator for identifying overbought and oversold conditions.
Reminder rally
Short-term recovery movement after oversold conditions, often without a fundamental trend reversal.
Rendite
Total return from price changes and distributions relative to the capital invested.
Renditeaufschlag (Spread)
Difference in the return of a risk instrument compared to a secure reference.
Renditebeitrag
Share of a position in the overall performance of a portfolio.
Renditeverteilung
Frequency distribution of historical returns of an asset or portfolio.
Rentenmarkt
Market for interest-bearing securities such as government and corporate bonds.
Reparaturkauf
Purchase after a price drop to reduce the average acquisition cost.
Repayment
Repayment of the nominal amount of a debt according to schedule or at maturity.
Repayment profile
Temporal course of planned debt repayments or tranches.
Repayment rate
Price at which a security is repaid at the end of the term or upon termination.
Replacement value
Current price for replacing an asset with an equivalent good.
Repo (Repurchase Agreement)
Short-term secured financing transaction with repurchase agreement.
Repo Facility
Central bank or market mechanism for providing secured liquidity.
Repo-Satz
Interest rate for repo transactions as an indicator of short-term money market conditions.
Reputationsrisiko
Potential loss of value due to loss of trust among customers, investors, or regulators.
Resale right (right of repurchase)
Contractual right to repurchase an asset at a later date.
Research Coverage
Analytical coverage of an issuer by banks or research houses.
Research Unbundling
Separation of order execution and research payment in accordance with MiFID II.
Reservation of Revocation
Contract clause that allows for later termination under certain conditions.
Residual income (Residual Income)
Surplus over capital costs, basis of value-oriented evaluations.
Residual income model (RIM)
Approach to valuation based on future residual earnings.
Residual Value (Terminal/Residual Value)
Estimated value at the end of the forecast horizon in evaluations.
Resistance
**Course area where the offer typically stops upward movements.**
Restlaufzeit
Remaining time until the maturity of a financial instrument.
Retail Investor (Privatanleger)
Non-professional investor without institutional status.
Retained earnings
Profit from past periods that has been allocated to equity reserves and not distributed.
Retracement
Correction movement within an existing trend.
Return On Assets (ROA)
Relationship of annual surplus to average total capital.
Return On Capital Employed (ROCE)
Ratio of EBIT to invested capital.
Return on Equity (ROE)
Ratio of net income to average equity.
Return On Invested Capital (ROIC)
Relationship of NOPAT to invested capital as a measure of quality.
Return on Investment (ROI)
The ratio of profit to capital employed as a measure of profitability.
Return on total assets (ROA)
Relationship of annual surplus to average total capital.
Return-risk profile
Comparison of expected returns and risks of an investment.
Revenue
Revenue size as the top line of the income statement.
Revenue growth
Percentage increase in revenues compared to the previous period or previous year.
Revenue Guidance
Management outlook on future revenues.
Revenue multiple (P/S ratio)
Rating multiples from course to sales per share.
Revenue per share (RPS)
Revenue per outstanding share.
Reversal (Mean-Reversion-Signal)
Reversal signal from price or indicator behavior after extremes.
Revisionsquote (Earnings Revisions)
Share and direction of the most recent earnings estimate changes.
Revolving Credit Facility (RCF)
Revolving credit with flexible drawdown and repayment.
Rho (options Greek)
Sensitivity of an option price to interest rate changes.
Right of withdrawal
Right to withdraw from contracts within legal deadlines.
Risikobudget
Allocated risk volume for portfolios, strategies, or managers.
Risikolimit
Upper limit of permissible risk exposure per unit or portfolio.
Risikotragfähigkeit
Ability to absorb losses from risks without jeopardizing the objectives.
Risk capital (Venture Capital)
Equity for early stages of companies with high risk/return potential.
Risk class
Classification of products or customers according to risk profile.
Risk limitation (Limits)
Quantitative specifications for limiting position, credit, or market risks.
Risk management
Identification, measurement, control, and monitoring of risks.
Risk Parity
Allocation approach that weights portfolio contributions by risk instead of capital.
Risk Premium
Additional return requirement for bearing a risk compared to the safe alternative.
Risk warning
Pflichttext zur Aufklärung über Verlustrisiken bei Finanzprodukten.
Risk-adjusted return
Return considering the incurred risk, e.g. Sharpe or Sortino.
Risk-free interest
Yield of practically fail-safe investments as the basis for evaluations.
Roadshow
Investor presentation series for placing issuances or maintaining the equity story.
Robustness test
Load testing of a model or strategy across variations and time periods.
Roll Down Return
Additional yield from the "rolling down" of a bond along the yield curve with a constant curve shape.
Roll Yield
Income or costs from the term structure in futures.
Roll-Over
Extension or transfer of a position to a later maturity.
Rollierende Volatilität
Volatility measurement over a continuously shifting time window.
Rolling Futures
Transfer of a position to the next maturity including roll costs.
Rollkurs (Forward Points)
Term adjustment due to interest rate differentials in foreign exchange trading.
Root Mean Square Error (RMSE)
Error measure for assessing model quality in forecasts.
Round Lot
Standardized minimum trading unit of a market.
Roundtrip costs
Total costs of a purchase and subsequent sale including fees and spreads.
Routing Decision
Selection of the execution venue or algorithm based on best execution criteria.
Rule Of 40
SaaS metric of revenue growth plus EBITDA margin as a rule of thumb for quality.
Rule Of 72 (Regel der 72)
Approach to the doubling time of capital at a given interest rate.
Run Rate
Extrapolation of current quarterly/monthly values to an annual level.
Run-Off
Targeted run-off of inventories without new business, for example in insurance or credit portfolios.
Running Yield
Relationship of the coupon of a bond to the current market price.
Russell indices
US stock index family with segments such as Russell 1000, 2000, and 3000.
RWA (Risk-Weighted Assets)
Risk-weighted assets as the basis of regulatory capital requirements.
