What Is Restricted Cash? Restricted cash, in contrast to unrestricted cash, is not freely available for a company to spend or invest. Restricted cash refers to money that is held for a specific purpose and thus not available to the company for immediate or general business use. Restricted cash appears as a separate item from
What Is a Restricted Fund? A restricted fund is a reserve account that contains money that can be used only for specific purposes. Restricted funds provide reassurance to donors that their contributions are used in a manner that they have chosen. They most often appear in the context of funds held by certain nonprofits, universities
What Is a Restricted Stock Unit (RSU)? A restricted stock unit (RSU) is an award of stock shares, usually given as a form of employee compensation. The recipient must meet certain conditions before the restricted stock units are transferred to the owner. Restricted stock units are issued to employees through a vesting plan and distribution
What Is a Restrictive Covenant? A restrictive covenant is a condition that restricts, limits, prohibits, or prevents the actions of someone named in an enforceable agreement. In bond obligations, restrictive covenants limit the amount issuers can pay in dividends to investors. Restrictive covenants are common in real estate deeds and leases, where they restrict how
What Is Reproduction Cost? Reproduction cost refers to the expense involved with identically reproducing an asset or property with the same materials and specifications as an insured property based on current prices. Insurers use reproduction cost as a method of claims valuation to calculate the costs involved with the risk of replacing an insured asset
What Is Repudiation? Repudiation involves disputing the validity of a contract and refusing to honor its terms. In investing, repudiation is most relevant in fixed income securities, particularly sovereign debt. Fixed income instruments are fundamentally contracts where the borrower lends a certain amount of principal in return for payments of interest and principal on a
What Is a Repurchase Agreement? A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day at a slightly higher price. That small difference in price
What Is Repurposing? Repurposing is the use of something for a purpose other than its original intended use. Repurposing an item can be done by modifying it to fit a new use, or by using the item as is in a new way. The practice is not limited to physical items. It’s common to repurpose marketing
What Is a Request for Application (RFA)? A request for application (RFA) is a type of solicitation notice in which an organization announces that grant funding is available. A grant is a financial award awarded by the federal, state, or local government for the benefit of a project or research. An RFA informs researchers and
What Is a Request for Proposal (RFP)? A request for proposal (RFP) is a business document that announces a project, describes it, and solicits bids from qualified contractors to complete it. Most organizations prefer to launch their projects using RFPs, and many governments always use them. When using an RFP, the entity requesting the bids is
