What Is a Ring-Fence? A ring-fence is a virtual barrier that segregates a portion of an individual’s or company’s financial assets from the rest. This may be done to reserve money for a specific purpose, to reduce taxes on the individual or company, or to protect the assets from losses incurred by riskier operations. Moving
What Is a Rio Trade? The term Rio trade refers to a high-risk financial market transaction that a trader makes in order to recover previous losses. The term originated from the idea that a desperate trader would buy a ticket to Rio de Janeiro and hop on a plane to escape creditors, regulators, or legal
What Is Ripple? Ripple is a blockchain-based digital payment network and protocol with its own cryptocurrency, XRP. Ripple’s main process is a payment settlement asset exchange and remittance system, similar to the SWIFT system for international money and security transfers, which is used by banks and financial middlemen dealing across currencies. The token used for the
What Is Ripple Swell? Ripple Swell is the annual conference held by the American technology company Ripple. It is a private event for Ripple customers, prospects, and partners only. In 2021, multiple on-demand Swell experiences were offered. Due to the pandemic, Ripple Swell was held virtually in 2020. In October 2019, the conference was held
What Is the Rising Three Methods Pattern? “Rising three methods” is a bullish continuation candlestick pattern that occurs in an uptrend and whose conclusion sees a resumption of that trend. This can be contrasted with a falling three method. Key Takeaways Rising three methods is a bullish continuation candlestick pattern that occurs in an uptrend
What Is Risk? Risk is defined in financial terms as the chance that an outcome or investment’s actual gains will differ from an expected outcome or return. Risk includes the possibility of losing some or all of an original investment. Quantifiably, risk is usually assessed by considering historical behaviors and outcomes. In finance, standard deviation
What Is a Risk-Adjusted Return? A risk-adjusted return is a calculation of the profit or potential profit from an investment that takes into account the degree of risk that must be accepted in order to achieve it. The risk is measured in comparison to that of a virtually risk-free investment—usually U.S. Treasuries. Depending on the
What Is a Reverse Stock Split? A reverse stock split is a type of corporate action that consolidates the number of existing shares of stock into fewer (higher-priced) shares. A reverse stock split divides the existing total quantity of shares by a number such as five or ten, which would then be called a 1-for-5
What Is Reverse Survivorship Bias? Reverse survivorship bias describes a situation where there is a tendency for low performers to remain in the game, while high performers are inadvertently dropped from the running. This is the opposite of survivorship bias, which occurs when only strong and successful members of a group survive and remain in the
What Is a Reverse Takeover (RTO)? A reverse takeover (RTO) is a process whereby private companies can become publicly traded companies without going through an initial public offering (IPO). To begin, a private company buys enough shares to control a publicly-traded company. The private company’s shareholder then exchanges its shares in the private company for
