Page 727 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

712 The Complete Guide to Executive Compensation

rating agency A company that rates debt issues of companies. See Moody’s Investor Services and
Standard & Poor’s.
rating bias Using nonperformance criteria to determine relative values.
ratio The quotient or resulting number after dividing one number into another.
real estate investment trust (REIT) An investment vehicle that is required to pay out at least
90 percent of its income as dividends from the real estate it owns and thereby avoid corporate
income taxes.
real estate limited partnership Similar to REIT except that original investment is not returned for
a longer period of time.
receivables Money due for products and services provided.
recession The downward phase of the business cycle that often precedes a depression.
recisions The rescinding of an action, thereby restoring the particulars to those in place before the
action.
recognition program Singling out a person or unit for their contribution, often without predeter-
mined targets or goals.
record date Date set by board of directors to determine dividend eligibility or shareholder voting.
record owner The person as of record date, which may precede actual ownership date.
recourse loan A debt obligation backed by additional collateral to the asset being purchased.
red circles Individuals whose pay exceeds the structural maximum.
redemption price The amount the company must pay if it wishes to retire preferred stock shares.
redemption rights Shareholder right to sell takeover target company stock at a significant premium
(may be equal to fair price).
redenominated type stock option Restatement of stock option following being acquired by
another company.
red herring A draft prospectus preliminary to the actual offering. Named because of red ink on top
of page.
refinance The assumption or guarantee of an existing loan.
refinancing Issuance of new securities at lower interest rates than those being paid off to reduce
costs.
registration A registration statement must be filed with the Securities Exchange Commission before
offering the securities to the public.
registered securities Stocks that have been registered with the SEC and may be bought and sold on
the open market and not subject to restricted securities regulations.
registration statement See Form S1, Form S2, Form S3, and Form S8.
regression See regression analysis.
regression analysis Statistical technique showing the relationship between two (single regression) or
more (multiple regression) variables, only one of which is dependent.
Regulation D SEC registration exemption for private placements.
Regulation FD The fair disclosure requirement that forbids companies from selectively disclosing
material information.
Regulation T Federal Reserve requirement that individuals who buy on margin need only pay
50 percent of stock’s cost at time of purchase.
reincorporation Takeover target company reincorporates in a state favorably viewing poison pill
actions.