What Is a Rollover? A rollover may entail a number of actions, most popularly the transfer of the holdings of one retirement plan to another without creating a taxable event. A rollover may also entail reinvesting funds from a mature security into a new issue of the same or similar security, or moving a FOREX (FX) position
What Is a Rollover Credit? A rollover credit is a net payment of interest received by a forex trader who holds a long position on a currency pair overnight when the long currency pays a higher rate on interest than the short currency in the pair. An overnight position in FX is one that does not close on the same
What Is Rollover Risk? Rollover risk is a risk associated with the refinancing of debt. Rollover risk is commonly faced by countries and companies when a loan or other debt obligation (like a bond) is about to mature and needs to be converted, or rolled over, into new debt. If interest rates have risen in
What Is a Roll Rate? In the credit card industry, the roll rate is the percentage of cardholders who become increasingly delinquent on their account balances due. The roll rate is essentially the percentage of card users who “roll” from the 60-days late category to the 90-days late category, or from the 90-days late to
What Is an Options Roll Up? An options roll up refers to closing an existing options position while opening a new position in the same option at a higher strike price. It is the opposite of an options roll down, where an investor simultaneously closes one position and opens another with a lower strike price.
What Is Return on Net Assets (RONA)? Return on net assets (RONA) is a measure of financial performance calculated as net profit divided by the sum of fixed assets and net working capital. Net profit is also called net income. The RONA ratio shows how well a company and its management are deploying assets in
Who Was Ronald H. Coase? Ronald H. Coase was an economist who made pathbreaking contributions to the fields of transaction cost economics, law and economics, and New Institutional economics. Coase was awarded the Nobel Memorial Prize in Economic Sciences in 1991 for his elucidation of the role of transaction costs, property rights, and economic institutions
What Is Return on New Invested Capital (RONIC)? Return on new invested capital (RONIC) is a calculation used by firms or investors to determine the expected rate of return for deploying new capital. A high RONIC indicates a more efficient use of capital, whereas a lower figure may reflect the poor allocation of resources. When
What Is Return on Risk-Adjusted Capital (RORAC)? The return on risk-adjusted capital (RORAC) is a rate of return measure commonly used in financial analysis, where various projects, endeavors, and investments are evaluated based on capital at risk. Projects with different risk profiles are easier to compare with each other once their individual RORAC values have
Tara Anand / Investopedia What Is a Roth IRA? An individual retirement account (IRA) is an account used to save for retirement. A Roth IRA is a special type of tax-advantaged individual retirement account to which you can contribute after-tax dollars. The primary benefit of a Roth IRA is that your contributions and the earnings
