What Is a Reconversion? An individual retirement account (IRA) reconversion—or recharacterization—allowed investors to reverse a Roth IRA conversion by shifting the funds back into a traditional IRA. However, the Tax Cuts and Jobs Act of 2017 banned the practice. Today, a Roth IRA conversion is irrevocable—once you transfer funds into a Roth, you can’t undo
What Is a Record Low? A record low is the lowest price or amount ever reached by a security, commodity, or index. A record low can be recorded by year, month, week, or a single trading day. They usually correspond to bad news about a company or a trade. Sectors and industries are often discussed
What Is a Recording Fee? The term recording fee refers to an expense charged by a government agency for registering or recording the purchase or sale of a piece of real estate. The transaction is recorded so it becomes a matter of public record. Recording fees are generally charged by the county where the transaction
What Is Recoupling? Recoupling is a market event or process that occurs when returns on asset classes revert back to their historical or traditional patterns of correlation after deviating for a period of time. This is in contrast to decoupling, which occurs when asset classes break away from their traditional correlations. Key Takeaway Recoupling is
What Is Recourse? A recourse is a legal agreement that gives the lender the right to pledged collateral if the borrower is unable to satisfy the debt obligation. Recourse refers to the lender’s legal right to collect. Recourse lending provides protection to lenders, as they are assured of having some repayment, either in cash or
What Is a Recourse Loan? The term recourse loan refers to a type of loan that can help a lender recoup its investment if a borrower fails to pay and the value of the underlying asset is not enough to cover it. A recourse loan is a form of secured financing. It lets the lender
What Are Recoverable Reserves Recoverable reserves are oil and gas reserves that are economically and technically feasible to extract at the existing price of oil. Resource reserves are important to companies’ balance sheets because they are assets that the company projects it will monetize and affect the company’s value to investors. Key Takeaways Recoverable reserves
What Is a Recovery Property? A recovery property was a specific class of depreciable real estate under the Accelerated Cost Recovery System (ACRS), a U.S. federal tax break from 1980 to 1986. In 1986, the ACRS became the Modified Accelerated Cost Recovery System (MACRS). Any property that is depreciable under ACRS is considered recovery property
What Is the Recovery Rate? Recovery rate is the extent to which principal and accrued interest on defaulted debt can be recovered, expressed as a percentage of face value. The recovery rate can also be defined as the value of a security when it emerges from default or bankruptcy. The recovery rate enables an estimate
What Are Rectangles? Rectangle refers to a pattern in which the price of an asset stays within an upper and lower limit. As the price stays between these limits, bouncing back and forth, a rectangle can be drawn, or seen, around the price action. Rectangles are also referred to as ranges. Key Takeaways A rectangle
