What Is a Reverse/Forward Stock Split? A reverse/forward stock split is a stock split strategy used by companies to eliminate shareholders that hold fewer than a specified number of shares. A reverse/forward stock split uses a reverse stock split followed by a forward stock split. How a Reverse/Forward Stock Split Works A reverse split reduces
What Is a Reverse ICO? A reverse initial coin offering (ICO) is a method used by existing, established real-world businesses to issue a token to decentralize the business ecosystem, raise funds, and get into cryptocurrency. These enterprises have existing products and services and they cater to real-world customers. Essentially, a reverse ICO acts like an
What Is a Reverse Mortgage Financial Assessment? A reverse mortgage financial assessment is a review of the borrower’s credit history, employment history, debts, and income during the reverse mortgage application process. The current reverse mortgage financial assessment requirement became effective in 2015. During the reverse mortgage financial assessment, lenders examine all of the borrower’s sources
What Is a Reverse Mortgage Initial Principal Limit? A reverse mortgage initial principal limit is the amount of money that a reverse mortgage borrower can receive from the loan. The initial principal limit depends on the borrower’s age at the time of application, the loan’s interest rate, and the home’s appraised value. Key Takeaways A
What Is a Reverse Mortgage Net Principal Limit? A reverse mortgage net principal limit is the amount of money that a reverse mortgage borrower can receive from a loan once it closes after accounting for its closing costs. The net principal limit can depend on several factors centered around the home’s equity value and how
What Is a Reverse Repurchase Agreement (RRP)? A reverse repurchase agreement (RRP), or reverse repo, is the sale of securities with the agreement to repurchase them at a higher price at a specific future date. A reverse repo refers to the seller side of a repurchase agreement (RP), or repo. These transactions, which often occur
What Is Return on Total Assets? Return on total assets (ROTA) is a ratio that measures a company’s earnings before interest and taxes (EBIT) relative to its total net assets. It is defined as the ratio between net income and total average assets, or the amount of financial and operational income a company receives in
What Is a Returned Payment Fee? A returned payment fee is a one-time penalty charged by a bank when a customer bounces a check. The bank sends the customer a message indicating that a check has been returned unpaid “due to non-sufficient funds” in the account. Depending on the bank, this fee can be between $25 and
What Is Return on Market Value of Equity (ROME)? The term “return on market value of equity” (ROME) refers to a measure used by analysts and investors to compare the performance and value of companies of different sizes and values. Professionals use the return on market value of equity to identify companies that generate positive
What Is Return of Capital (ROC)? Return of capital occurs when an investor receives a portion of their original investment that is not considered income or capital gains from the investment. Note that a return of capital reduces an investor’s adjusted cost basis. Once the stock’s adjusted cost basis has been reduced to zero, any
