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
What Is a Revolving Underwriting Facility (RUF)? A revolving underwriting facility (RUF) is a form of revolving credit in which a group of underwriters agrees to provide loans if a borrower is unable to sell in the eurocurrency market. The eurocurrency market is a marketplace where lending currencies are held as deposits at banks outside of
What Is Rule 10b – 18? Rule 10B-18 is a Securities and Exchange Commission (SEC) rule that is intended to reduce liability for companies (and their affiliated purchasers) when the company repurchases shares of the company’s common stock. Rule 10B-18 is considered a safe harbor provision. A safe harbor is a legal provision to reduce or
What Is Rule 10b-5? Rule 10b-5 is a regulation created under the Securities and Exchange Act of 1934 that targets securities fraud. This rule makes it illegal for anybody to directly or indirectly use any measure to defraud, make false statements, omit relevant information, or otherwise conduct business operations that would deceive another person in the
What Was Rule 10b-6? Rule 10b-6 was an anti-manipulation rule set forth by the Securities and Exchange Commission (SEC) that prohibited the purchase of stock by an issuer when the stock had not completed distribution. Rule 10b-6 was designed to prevent issuers from tampering with the market by bidding for shares before they were publicly
What Is the Rule of 72? The Rule of 72 is a quick, useful formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return. Alternatively, it can compute the annual rate of compounded return from an investment given how many years
What Is the Rule of 78? The Rule of 78 is a method used by some lenders to calculate interest charges on a loan. The Rule of 78 requires the borrower to pay a greater portion of interest in the earlier part of a loan cycle, which decreases the potential savings for the borrower in
What is a Rule Of Thumb? A rule of thumb is a heuristic guideline that provides simplified advice or some basic rule-set regarding a particular subject or course of action. It is a general principle that gives practical instructions for accomplishing or approaching a certain task. Typically, rules of thumb develop as a result of
