What Is a Registered Principal? The term registered principal refers to a licensed securities dealer empowered to oversee operational, compliance, trading, and sales personnel. Put simply, a registered principal is someone who holds a position in management in a securities or investment company. A registered principal must hold a principal license and since they also
What Is a Registered Representative (RR) A registered representative (RR) is a person who works for a client-facing financial firm such as a brokerage company and serves as a representative for clients who are trading investment products and securities. Registered representatives may be employed as brokers, financial advisors, or portfolio managers. Registered representatives must pass licensing tests
What Is a Registrar? A registrar is an institution, often a bank or trust company, responsible for keeping records of bondholders and shareholders after an issuer offers securities to the public. When an issuer needs to make an interest payment on a bond or a dividend payment to shareholders, the firm refers to the list
What Is a Regression? Regression is a statistical method used in finance, investing, and other disciplines that attempts to determine the strength and character of the relationship between one dependent variable (usually denoted by Y) and a series of other variables (known as independent variables). Also called simple regression or ordinary least squares (OLS), linear
What Is a Regressive Tax? A regressive tax is a tax applied uniformly, taking a larger percentage of income from low-income earners than from middle- and high-income earners. It is in opposition to a progressive tax, which takes a larger percentage from high-income earners. With a regressive tax, the tax burden decreases as income rises. Some examples
What Is Regret Theory? Regret theory states that people anticipate regret if they make the wrong choice, and they consider this anticipation when making decisions. Fear of regret can play a significant role in dissuading someone from taking action or motivating a person to take action. Regret theory can impact an investor’s rational behavior, impairing
What Is Regulation SHO? Regulation SHO is a set of rules from the Securities and Exchange Commission (SEC) implemented in 2005 that regulates short sale practices. Regulation SHO established “locate” and “close-out” requirements aimed at curtailing naked short selling and other practices. Naked shorting takes place when investors sell short shares that they do not
What Is a Regular-Way Trade (RW)? A regular-way trade (RW) is settled within the standard settlement cycle, which, depending on the transaction type, will typically range from one to three business days. T+1, T+2, and T+3 are the abbreviations that refer to the settlement date of security transactions. The “T” stands for transaction date, which is the day the
What Is Regulation Z? Regulation Z is the Federal Reserve Board regulation that implemented the Truth in Lending Act of 1968, which was part of the Consumer Credit Protection Act of that same year. The act’s major goals were to provide consumers with better information about the true costs of credit and to protect them
What Is Regulation 9? Regulation 9 is the federal rule that prescribes the standards that apply to the fiduciary activities of national banks which have received approval to act as fiduciaries by the Office of the Comptroller of the Currency (OCC). As fiduciaries, national banks may exercise discretion on behalf of third parties with respect to investments and
