What Is Regulation SHO? Regulation SHO is a set of rules from the Securities and Exchange Commission (SEC) implemented in 2005 that regulates short sale practices. Regulation SHO established “locate” and “close-out” requirements aimed at curtailing naked short selling and other practices. Naked shorting takes place when investors sell short shares that they do not
What Is a Regular-Way Trade (RW)? A regular-way trade (RW) is settled within the standard settlement cycle, which, depending on the transaction type, will typically range from one to three business days. T+1, T+2, and T+3 are the abbreviations that refer to the settlement date of security transactions. The “T” stands for transaction date, which is the day the
What Is Regulation Z? Regulation Z is the Federal Reserve Board regulation that implemented the Truth in Lending Act of 1968, which was part of the Consumer Credit Protection Act of that same year. The act’s major goals were to provide consumers with better information about the true costs of credit and to protect them
What Is Regulation 9? Regulation 9 is the federal rule that prescribes the standards that apply to the fiduciary activities of national banks which have received approval to act as fiduciaries by the Office of the Comptroller of the Currency (OCC). As fiduciaries, national banks may exercise discretion on behalf of third parties with respect to investments and
What Is Recurring Debt? Recurring debt is any payment used to service debt obligations that occur on a continuing basis. Recurring debt involves payments that cannot be easily canceled at the payer’s request, including alimony, child support, and loan payments. Key Takeaways Recurring debt is any payment used to service debt obligations that occur on a
What Is a Recycle Ratio? A recycle ratio is a key profitability measure of the oil and gas industry. The ratio is calculated by dividing the profit per barrel of oil by the cost of finding and developing that barrel of oil. The profit per barrel is known in industry terminology as “netback,” and finding
What Is Red in Finance? In finance, the color red has several negative connotations that generally revolve around losing money. “Red” can denote a negative balance on a company’s financial statement or an individual’s bank account. It can also signify unfruitful investments, as well as unfavorable regulations governing businesses. Key Takeaways Red is a color
What Is Redacted? Redacted, a fairly common practice in legal documents, refers to the process of editing a document to conceal or remove confidential information before disclosure or publication. Key Takeaways Redacted, a fairly common practice in legal documents, refers to the process of editing a document to conceal or remove confidential information before disclosure
What Is a Red Candlestick? A red candlestick is a price chart indicating that the closing price of a security is below both the price at which it opened and previously closed. A candlestick may also be colored red if the close is below the prior close, but above the open—in which case it will usually
What Is a Red Clause Letter Of Credit? A red clause letter of credit is a specific type of letter of credit in which a buyer extends an unsecured loan to a seller. Red Clause Letters of Credit permit documentary credit beneficiaries to receive funds for any merchandise outlined in the letter of credit. These
