What Is a Reference Rate? A reference rate is an interest rate benchmark used to set other interest rates. Various types of transactions use different reference rate benchmarks, but the most common include the Fed Funds Rate, LIBOR, the prime rate, and the rate on benchmark U.S. Treasury securities. Reference rates are useful in homeowner mortgages
What Is a Recessionista? A recessionista is a person who can shop on a limited budget and still manage to be up-to-date on the most current fashions. In other words, times of economic hardship do not prevent them from remaining stylish. A recessionista does not let a bad economy, a bear market, or high inflation
What Is Recession Proof? Recession proof is a term used to describe an asset, company, industry or other entity that is believed to be economically resistant to the effects of a recession. Recession-proof stocks are added to investment portfolios to safeguard them against times of economic decline, which may be the onset of a recession.
What Does Recession Resistant Mean? An entity that is not significantly affected by recessions is considered recession resistant. Recession resistance can apply to products, companies, jobs, or even entire industries. For example, products such as gasoline or basic food items may be considered recession resistant because people will continue to consume them regardless of an
What Is Recharacterization? Recharacterization refers to two separate individual retirement account (IRA) strategies: A contribution to an IRA can be recharacterized as a contribution to a different IRA. This strategy is currently permissible, and you can recharacterize your Roth IRA contribution into a traditional IRA contribution and vice versa, though specific deadlines apply. A Roth
What Is a Reciprocal Insurance Exchange? Reciprocal insurance exchanges are a form of insurance organization in which individuals and businesses exchange insurance contracts and spread the risks associated with those contracts among themselves. Policyholders of a reciprocal insurance exchange are referred to as subscribers. Key Takeaways A reciprocal insurance exchange is a type of organization where individuals
What Is Reclamation? Reclamation is the process of demanding the return of property to a former owner in the event of dormancy, non-payment, fraud, or some other irregularity. Reclamation may be sought in a number of contexts: In the financial markets, a trader may demand reclamation, or repayment, for stocks or other securities purchased, due
What Is Reclassification? Reclassification is most commonly known as the process of changing a share class issued by mutual funds. This can occur when certain requirements have been met, or else it may be caused by changes made by the mutual fund company. In most cases reclassification is not considered to be a taxable event.
What Is a Recognized Gain? A recognized gain is when an investment or asset is sold for an amount that is greater than what was originally paid. Recognizing gains on an asset will trigger a capital gains situation, but only if the asset is deemed to be capital in nature. The amount of any capital
What Is Recompense? Recompense is the act of awarding a target person, group or entity some form of monetary benefit as a result of the target performing some action, or as the result of some action that has happened to the target. Recompense is one of the main tenets of capitalism, as people perform a task
