What Is a Reversal? A reversal is a change in the price direction of an asset. A reversal can occur to the upside or downside. Following an uptrend, a reversal would be to the downside. Following a downtrend, a reversal would be to the upside. Reversals are based on overall price direction and are not
What Is a Reverse Auction? A reverse auction is a type of auction in which sellers bid for the prices at which they are willing to sell their goods and services. It is the opposite of a regular auction, where a seller puts up an item and buyers place bids until the close of the
What Is Reverse Culture Shock? Reverse culture shock is the emotional and psychological distress suffered by some people when they return home after a number of years overseas. This can result in unexpected difficulty in readjusting to the culture and values of the home country, now that the previously familiar has become unfamiliar. In a
What Is a Reverse Exchange? A reverse exchange in real estate is a type of property exchange wherein the replacement property is acquired first and then the current property is sold. A reverse exchange was created to help buyers purchase a new property before being forced to trade in or sell a current property. This
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
