Red clause
Red herring See pathfinder. Redemption date The date on which a security can be redeemed (that is, when the principal can be repaid). This is not necessarily the same as the maturity date. The security may have a fixed maturity but also contain an option to call for repayment earlier. Redemption yield The total yield on a fixed-income security which includes the flat yield (the declared rate of interest) plus the discounted present value of the future capital gain on the security. So a government bond with a coupon of 3%, a face value of $100, a market price of $50 and three years to maturity has a current yield of 6%. Its redemption yield is 6% plus the discounted present value of $50 that is to be gained in three years’ time. Red lining The allegedly once common practice by banks of putting a red line around certain neighbourhoods or ghettos, and refusing to lend to any borrower within that area. Red lining based on race or racial mix is now illegal in most countries. Refinancing Paying off an existing debt with a new loan (which is cheaper, bigger or has a longer maturity). As the rate of interest falls, borrowers want to refinance debt taken out at a fixed rate. When some sorts of projects are completed as a housing development or a major road), the existing debt can be refinanced at keener rates because the risk of the project not being completed on time has been lifted. In some cases, banks impose https://www.easycorp.com.hk https://www.easycorp.com.hk/zh/offshore https://www.easycorp.com.hk/zh/offshore penalties on the early repayment of debt. (See also prepayment.) Registered representative A person in the United States registered with the sec to give advice on what securities to buy and sell. Registered representatives pass on a client’s orders to a broker (which may also employ them) to be executed. In return, the registered representative receives a percentage of the brokerage commission. Registered security A security whose owner has to be registered with its issuer. When the security changes hands, the new owner has to inform the issuer of the change. In most developed countries, every company is obliged to keep a register of the owners of its shares. In it are recorded the owners’ names and addresses (or of the appointed nominees), the day they became shareholders and the day they ceased to be. The place where this register is kept (and where it is open to the public) is the registered office of the company (or that of its designated registrar). (See also bearer security)
