Rally

A rapid increase in stock market prices or in the price of a particular security.

Random Walk Theory

A theory which states that past prices of a security cannot be a means of predicting future prices as stock prices are a reflection of the information coming into the market in a random fashion. In other words, daily changes in stock prices are at random and such changes have similar probability distribution.

Rating

The assessment of the investment quality of a bond by ascribing a grade such as AA, BB, CC to it. Ratings change with changes in the financial conditions of the issuer.

Rating Agencies

Institutions which, as a business, professionally evaluate the investment qualities of debt issues.

Registered Securities

Securities of a Company or government for which a registration has been obtained from a securities commission and could thus be offered the public. It also refers to a security which has had its owner's name register on the list of members maintained by the issuer or its agent.

Registrar

A capital market operator appointed by a public company to maintain a comprehensive list of its bond/ shareholders; dispatches annual report, dividend warrants and return monies and other documents to shareholders. He may also arrange annual general and extra-ordinary general meetings on behalf of the company and perform other related functions. Registrars' activities are not restricted to public companies but extend to government issues

Regulation

The formulation and application of rules and the introduction of ethical standards to guide business conduct, protect investors, maintain stability, and promote the efficiency of a capital market.

Restricted Securities

Stocks and bonds of companies which are not open to the public for subscription.

Retained Earnings

Undistributed profits of a company accumulated for reinvestment.

Rights Issue

A new issue of securities of a company offered to its existing shareholders in proportion to their holdings. To enhance attractiveness, rights issues are usually offered at a discount to the market price of the security.

Rights Trading

Trading on a stock exchange of rights in respect of a right issue by shareholders who do not wish to exercise all or a portion of the securities allotted to them. Such rights are only tradable during the offer period.

Round Lot

A standard trading unit in a stock exchange, e.g. 100 shares which indicate the minimum units of a particular security an investor could purchase or sell. (also called board lot).