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Terms Dictionary

Terms beginning with R

5 definitions

RebalancingStrategy

Periodically trimming winners and topping up laggards to restore a portfolio's target asset weights.

RecessionEconomy

A significant, widespread, and prolonged decline in economic activity. A common rule of thumb is two consecutive quarters of negative GDP growth.

REITReal Estate

A real estate investment trust that owns income-producing property and distributes most of its taxable income as dividends.

Return on Equity (ROE)Performance

A profitability ratio calculated as net income divided by shareholders' equity. It measures how effectively a company uses equity capital to generate profits.

Roth IRARetirement

A retirement account funded with after-tax money where qualified withdrawals, including growth, are tax-free.