What Is a Safekeeping Certificate? In finance, the term “safekeeping certificate” refers to a legal document stating the beneficial ownership of securities held by an institution on behalf of their owner. In modern financial markets, these kinds of safekeeping relationships are commonly used by investors, who rely on brokerage firms and other intermediaries to buy
What Is the Safe Withdrawal Rate (SWR) Method? The safe withdrawal rate (SWR) method is one way that retirees can determine how much money they can withdraw from their accounts each year without running out of money before reaching the end of their lives. The safe withdrawal rate method is a conservative approach that tries
What Is a Registered Retirement Income Fund (RRIF)? A registered retirement income fund (RRIF) is a retirement fund similar to an annuity contract, which pays out income to one or more beneficiaries. Often, owners of registered retirement savings plans (RRSP) roll over the balance from those plans into an RRIF in order to fund a
What Is a Registered Retirement Savings Plan (RRSP)? A Registered Retirement Savings Plan (RRSP) is a retirement savings and investing vehicle for employees and the self-employed in Canada. Pre-tax money is placed into an RRSP and grows tax-free until withdrawal, at which time it is taxed at the marginal rate. Registered Retirement Savings Plans have many
What Is a Registered Retirement Savings Plan (RRSP) Deduction Limit? The registered retirement savings plan (RRSP) deduction limit is the maximum sum that Canada allows its taxpayers to deduct from their income when calculating tax liability. The registered retirement savings plan deduction limit, or RRSP deduction limit, is set by the Canada Revenue Agency (CRA)
What Is the Relative Strength Index (RSI)? The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security’s recent price changes to evaluate overvalued or undervalued conditions in the price of that security. The RSI is displayed as an oscillator (a line graph) on
What Is R-Squared? R-squared (R2) is a statistical measure that represents the proportion of the variance for a dependent variable that’s explained by an independent variable or variables in a regression model. Whereas correlation explains the strength of the relationship between an independent and dependent variable, R-squared explains to what extent the variance of one
What Is Real-Time Gross Settlement (RTGS)? The term real-time gross settlement (RTGS) refers to a funds transfer system that allows for the instantaneous transfer of money and/or securities. RTGS is the continuous process of settling payments on an individual order basis without netting debits with credits across the books of a central bank. Once completed
What Is a Reverse Triangular Merger? A reverse triangular merger is the formation of a new company that occurs when an acquiring company creates a subsidiary, the subsidiary purchases the target company, and the subsidiary is then absorbed by the target company. A reverse triangular merger is more easily accomplished than a direct merger because
What Are Round Trip Transaction Costs? Round trip transaction costs refer to all the costs incurred in a securities or other financial transaction. Round trip transaction costs include commissions, exchange fees, bid/ask spreads, market impact costs, and occasionally taxes. Since such transaction costs can erode a substantial portion of trading profits, traders and investors strive
