What Is a Real Option? A real option is an economically valuable right to make or else abandon some choice that is available to the managers of a company, often concerning business projects or investment opportunities. It is referred to as “real” because it typically references projects involving a tangible asset (such as machinery, land
What Is Real Property? Real property is a parcel of land and everything that is permanently attached to the land. The owner of real property has all of the rights of ownership, including the right to possess, sell, lease, and enjoy the land. Real property may be classified according to its general use as residential
What Is the Real Rate of Return? The real rate of return is the annual percentage of profit earned on an investment, adjusted for inflation. Therefore, the real rate of return accurately indicates the actual purchasing power of a given amount of money over time. Adjusting the nominal return to compensate for inflation allows the
What Is Real-Time Trade Reporting? Real-time trade reporting refers to a regulatory requirement that market makers (MMs) publicly report each transaction immediately after it is completed. Real-time trade reporting improves efficiency and transparency in the market. Real-time trade reporting should not be confused with real-time quotes (RTQs), which instead provide bid and offer information about
What Is a Realtor? A realtor is a real estate professional who is a member of the National Association of Realtors (NAR), a professional association. The NAR defines the term realtor as a federally registered collective membership mark that identifies a real estate professional who is a member of the association and subscribes to its
What Is Reasonable Doubt? Reasonable doubt is legal terminology referring to insufficient evidence that prevents a judge or jury from convicting a defendant of a crime. It is the traditional standard of proof that must be exceeded to secure a guilty verdict in a criminal case in a court of law. In a criminal case, it
What Is a Reasonableness Standard? The term “reasonableness standard” has several applications in finance and law. In general, the standard is related to the requirement that expectations placed upon a party are considered reasonable. A fiduciary relationship, for example, is a professional standard between a client and service provider that both puts the client’s interests
What is a Reassessment A reassessment refers to a periodic reevaluation of a property’s value for tax purposes. State and local governments assess property taxes based on two variables: property values and tax rates. Local laws vary, but reassessment generally takes place every one to five years or when a property changes hands. Some municipalities also
What Is Rebalancing? Rebalancing refers to the process of returning the values of a portfolio’s asset allocations to the levels defined by an investment plan. Those levels are intended to match an investor’s tolerance for risk and desire for reward. Over time, asset allocations can change as market performance alters the values of the assets.
What Is a Rebate Option? A rebate option is an offer for a cash return on the purchase of a consumer good or service. Rebates can come in many different forms. Flat-rate rebates are automatically subtracted from the purchase price. Conditional rebates are only valid under certain conditions, such as “buy one, get one free.”
