Definition
Rights can raise capital for the company but may dilute shareholders who do not participate.
Worked example
A 20% right issue may allow an investor with 100 shares to buy 20 new shares at the announced right price.
R
Glossary · PSX term
Right shares.
Right shares give existing shareholders the option to buy additional shares, usually at a set price and ratio. Investors should review the purpose, price, and dilution effect before deciding whether to subscribe.
More glossary terms
Browse all 199 terms →Return on equity
Return on equity, or ROE, shows how much profit a company generates compared with shareholder equity. It is a profitability ratio, not a guarantee of future returns.
Realized gain
A realized gain is profit from a position that has been sold. It matters for performance tracking and may affect tax calculations depending on rules, holding period, and investor status.
Reverse split
A reverse split combines several shares into one, raising the price per share without changing total value.
Record date
The record date is the cut-off day a company uses to decide who qualifies for a dividend or other action.
Rollover week
Rollover week is the period when expiring futures positions are closed or moved to the next contract.
Real Estate Investment Trust (REIT)
A REIT is a listed vehicle that owns or develops real estate and passes income to unit holders.
Return on assets (ROA)
ROA shows how much profit a company generates from its total assets.
Risk-free rate
The risk-free rate is the return on an investment considered to have virtually no default risk.
Risk tolerance
Risk tolerance is how much loss and volatility you can handle financially and emotionally.