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HMRC internal manual

VAT Finance Manual

Glossary of terms: R

Rally The rapid rise in a price following a fall.
Recognised Investment Exchange (RIE) An investment exchange which meets FSA requirements for recognition.
Recourse A term used in factoring relating to the obligation of the client company to buy back any unpaid debts from the factoring company.
Redemption Date The date on which a security (usually a fixed interest stock) is due to be repaid by the issuer at its full face value. The year is included in the title of the security; the actual redemption date being that on which the last interest is due to be paid.
Renounceable Documents Temporary evidence of ownership, of which there are three main types:
  • when a company offers shares to the public, it sends an allotment letter to the successful applicants.
  • if it makes a rights issue, it sends a provisional allotment letter to its shareholders.
  • in the case of a capitalisation issue, it sends a renounceable certificate.
All of these are in effect bearer securities, and are valuable. Each includes full instructions on what should happen if the holder wishes to have the newly issued shares registered in their own name, or if they wish to renounce them in favour of somebody else.    
  Repo An agreement where a loan or securities are sold to a third party with a commitment to repurchase the asset for an agreed price on demand, or after a stated time, or in the event of a particular contingency.
  Registrar An organisation that takes responsibility for maintaining a company’s share register.
  Regulatory News Service (RNS) A service operated by the London Stock Exchange, which ensures that price-sensitive information from listed companies is collected and then disseminated to all RNS subscribers at the same time.
  Return Commission Many orders to buy or sell securities are placed with the broker by an agent e.g. banks, accountants, stockbrokers. This intermediary is entitled to a share of any commission charged to his client, this share being known as return commission, and is self-billed by the broker.
  Reverse Repo An agreement under which a holder of cash who wishes to earn interest or ‘borrow’ securities agrees to lend that cash against the purchase of securities, and simultaneously agrees to resell the securities for an agreed price on demand, or after a stated time, or in the event of a particular contingency.
  Revolving Underwriting Facility (RUF) A facility which gives the client the right to issue securities at unspecified dates within an agreed time span, which the bank (or similar institution) will underwrite.
  Rights Issue An invitation to existing shareholders to purchase additional shares in the company.
  Roll Over The continuance of an existing agreement.
  Roll Over Loan A loan for a fixed period, but where the interest rate is reviewed at intervals throughout the term of the loan, based on a formula agreed at the time the loan is made.
  Round Amounts Amounts of stock or numbers of shares in which market makers are ready to deal on a normal price basis, as opposed to ‘odd lot’ amounts or numbers.