What Is a Reciprocal Insurance Exchange? Reciprocal insurance exchanges are a form of insurance organization in which individuals and businesses exchange insurance contracts and spread the risks associated with those contracts among themselves. Policyholders of a reciprocal insurance exchange are referred to as subscribers. Key Takeaways A reciprocal insurance exchange is a type of organization where individuals
What Is Reclamation? Reclamation is the process of demanding the return of property to a former owner in the event of dormancy, non-payment, fraud, or some other irregularity. Reclamation may be sought in a number of contexts: In the financial markets, a trader may demand reclamation, or repayment, for stocks or other securities purchased, due
What Is Reclassification? Reclassification is most commonly known as the process of changing a share class issued by mutual funds. This can occur when certain requirements have been met, or else it may be caused by changes made by the mutual fund company. In most cases reclassification is not considered to be a taxable event.
What Is a Recognized Gain? A recognized gain is when an investment or asset is sold for an amount that is greater than what was originally paid. Recognizing gains on an asset will trigger a capital gains situation, but only if the asset is deemed to be capital in nature. The amount of any capital
What Is Recompense? Recompense is the act of awarding a target person, group or entity some form of monetary benefit as a result of the target performing some action, or as the result of some action that has happened to the target. Recompense is one of the main tenets of capitalism, as people perform a task
What Is Reconciliation? Reconciliation is an accounting process that compares two sets of records to check that figures are correct and in agreement. Reconciliation also confirms that accounts in the general ledger are consistent, accurate, and complete. However, reconciliation can also be used for personal purposes in addition to business purposes. Account reconciliation is particularly
What Is a Reconversion? An individual retirement account (IRA) reconversion—or recharacterization—allowed investors to reverse a Roth IRA conversion by shifting the funds back into a traditional IRA. However, the Tax Cuts and Jobs Act of 2017 banned the practice. Today, a Roth IRA conversion is irrevocable—once you transfer funds into a Roth, you can’t undo
What Is a Record Low? A record low is the lowest price or amount ever reached by a security, commodity, or index. A record low can be recorded by year, month, week, or a single trading day. They usually correspond to bad news about a company or a trade. Sectors and industries are often discussed
What Is a Recording Fee? The term recording fee refers to an expense charged by a government agency for registering or recording the purchase or sale of a piece of real estate. The transaction is recorded so it becomes a matter of public record. Recording fees are generally charged by the county where the transaction
What Is Recoupling? Recoupling is a market event or process that occurs when returns on asset classes revert back to their historical or traditional patterns of correlation after deviating for a period of time. This is in contrast to decoupling, which occurs when asset classes break away from their traditional correlations. Key Takeaway Recoupling is
