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GLOSSARY
Real interest rate
Real interest rate represents the rate earned by an investment, discounted for inflation. Say, for example, that an individual purchases a bond paying 6 percent interest, and the inflation rate is 5 percent. The real interest rate is 1 percent, or the portion of the rate that's in excess of the inflation rate.
Real property
Unmovable property, like buildings and land.
Realized gain
Realized gain is the profit earned when an asset is sold for more than it cost to acquire. Realized gains usually have tax consequences.
Realized loss
A realized loss occurs when an asset is sold for less than it cost to acquire. Realized losses can be used to offset the taxes owed on realized gains.
Realtist
A Realtist is one who maintains membership in the National Association of Real Estate Brokers.
Realtor
A real estate agent is a realtor when he is a member of The National Association of Realtors. It is also a registered collective membership mark that identifies with a real estate professional who is a member of the NAR and follows a strict code of ethics.
Reasonable and customary charges
Reasonable and customary charges are standard fees charged by healthcare providers for a particular service or procedure.
Reassessment
A reassessment is a second evaluation. In property taxes, a reassessment is the process of updating the taxable value of a property or properties.
Rebalancing
Rebalancing is the process of re-allocating invested funds so that a portfolio follows an intended investment strategy. Periodic rebalancing is necessary because the allocation of funds will change as securities perform at different levels. For example, one security may experience a value increase of 25 percent, while the rest of the portfolio grows at an average of 8 percent. The investor will then have too much exposure in the out-performing security. Rebalancing will return the portfolio to the desired asset allocations.
Rebate
A rebate is a partial refund of a purchase transaction. More generally, a rebate can also be a discount, incentive, or kickback, such as the discount provided when a bill of exchange is fulfilled before maturity. In a bond short sale, the lender will sometimes pay a rebate of interest earned on the sale's proceeds to the seller.
Rebate card
A rebate card is a plastic card that holds transaction data so that the customer can accrue cash or merchant credit. Rebate cards are used to foster customer loyalty.
Recast trigger
Recast trigger is a predefined event that will reset payments on a negative-amortizing mortgage loan so that the mortgage converts to a fully amortizing structure. Mortgages that allow for negative amortization, such as Option ARMs, will have defined recast triggers. Usually, there'll be a recast trigger date and a recast trigger amount. If the loan balance rises to a certain level, the mortgage automatically converts to fully amortizing payments. Otherwise, the loan will convert at the recast trigger date.
Receipt
A receipt is the written documentation of a purchase transaction.
Receiver
A receiver is an individual assigned to manage a bankrupt company's assets, such that creditors can be paid back as much as possible. The receiver's role may be limited to selling off the company's assets, or it could involve managing company operations for a short period of time.
Receivership
Receivership is a stage of a business bankruptcy proceeding. The company is said to be in receivership when the court has assigned an individual to run the operations temporarily. This individual is tasked with managing the assets so that creditors can be repaid as much as possible.