What Is Repricing? Repricing involves the exchange of worthless employee stock options for new options that have intrinsic value. This is a common practice for companies to keep or incentivize executives and other highly valued employees when the value of the company’s shares falls below the exercise price or break-even point for the options issued
What Is a Reinsurer? The term reinsurer refers to a company that provides financial protection to insurance companies. Reinsurers handle risks that are too large for insurance companies to handle on their own and make it possible for insurers to obtain more business than they would otherwise be able to. Reinsurers also make it possible
What Is Reinvestment? Reinvestment is the practice of using dividends, interest, or any other form of income distribution earned in an investment to purchase additional shares or units, rather than receiving the distributions in cash. Key Takeaways Reinvestment is when income distributions received from an investment are plowed back into that investment instead of receiving cash.Reinvestment works by
What Is a Reinvestment Rate? The reinvestment rate is the amount of interest that can be earned when money is taken out of one fixed-income investment and put into another. For example, the reinvestment rate is the amount of interest the investor could earn if he purchased a new bond while holding a callable bond
What Is a Reinvoicing Center? Reinvoicing centers are subsidiaries or separate divisions of a multinational corporation that handle intra-firm transactions in different currencies. Such divisions are the centers of invoice processing and billing for other divisions located around the world. They bill and pay all invoices in the currency of the originating country and then re-invoice the affiliate branches in
What Is a Real Estate Investment Trust (REIT)? A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate. Modeled after mutual funds, REITs pool the capital of numerous investors. This makes it possible for individual investors to earn dividends from real estate investments—without having to buy, manage, or
What Is a REIT ETF? Real estate investment trust (REIT) ETFs are exchange-traded funds (ETFs) that invest the majority of their assets in equity REIT securities and related derivatives. REIT ETFs are passively managed around an index of publicly-traded real estate owners. Two frequently used benchmarks are the MSCI U.S. REIT Index and the Dow
What Is a Related-Party Transaction? The term related-party transaction refers to a deal or arrangement made between two parties who are joined by a preexisting business relationship or common interest. Companies often seek business deals with parties with whom they are familiar or have a common interest. Although related-party transactions are themselves legal, they may
What Is Relationship Banking? Relationship banking is a strategy used by banks to strengthen customer loyalty and provide a single point of service for a range of different products and services. A customer of a bank may start out with a simple checking or savings account, but relationship banking involves a personal or business banker
What Is Relationship Management? The term relationship management refers to a strategy in which an organization maintains an ongoing level of engagement with its audience and supply chain. This management can occur between a business and its customers, which is called business to consumer [B2C], or between a business and other businesses, which is referred to as
