| real-time trade reporting | A requirement that Market Makers report each trade in a Nasdaq security to Nasdaq within 90 seconds of execution. | |
| record date | The date on which a company's records are closed to determine which stockholders are to be sent dividends, proxies, rights, etc. | |
| red herring prospectus | Industry jargon for a preliminary prospectus issued by underwriters or issuers to gauge interest in a prospective offering. It receives its name from the warning, printed in red, that information in the document is incomplete or subject to change before the issue. (See prospectus, underwriters) | |
| registered representative | The employee of a FINRA firm who gives advice on which securities to buy and sell, and who collects a percentage of the commission income he or she generates. | |
| registrar | The registrar is responsible for keeping track of the owners of bonds and the issuance of stocks. Working with the transfer agent, the registrar keeps current files of the owners of a bond issue and the stockholders in a corporation. The registrar ensures that no more than the authorized amount of stock is in circulation. If the registrar and transfer agent are the same company, then there must be a Chinese Wall separating the functions. (See Chinese Wall, transfer agent) | |
| Regulation T | A rule of the Federal Reserve Board that governs the extension of credit by broker/dealers to customers to purchase and carry securities. | |
| retail investor | See individual investor | |
| retail shareholder | See individual investor | |
| reverse split | See split | |
| right | A privilege allowing existing shareholders in a company to buy shares of a new issue of common stock before it is offered to the public. | |
| road show | A series of meetings with potential investors in key cities, designed and performed by a company and its investment banker as the company prepares to go public. | |
| Rule 10b-21 | Securities and Exchange Commission rule that prohibits covering a short position in a security with stock purchased out of a new offering of the security, if the short position was established between the filing of the registration statement and the beginning of the distribution of the offering. (See short sale) | |
| Rule 10b-6 | Securities and Exchange Commission rule that prohibits persons engaged in a distribution of securities from bidding for or purchasing those or similar securities until they have completed their participation in the distribution. | |
| Rule 10b-6A | Securities and Exchange Commission rule that permits broker/dealers engaged in the distribution of a security to engage in "passive" market making transactions in the security being distributed without being in violation of the provisions of SEC Rule 10b-6. (See passive market-making) | |
| Rule 13d | The Securities and Exchange Commission rule requiring disclosures by anyone acquiring a beneficial ownership of 5 percent or more in any equity security registered with the SEC. (See beneficial owner) | |
| Rule 15c3-1 | Securities and Exchange Commission rule that requires broker-dealers maintain sufficient liquid assets to satisfy its net capital requirement. (See net capital rule) | |
| Rule 15c3-3 | Securities and Exchange Commission rule that ensures that the broker-dealer has possession or control of customers' securities, and properly segregates these securities from securities the firm owns. The rule also requires that the broker/dealer deposits customers' funds in a Special Reserve Bank Account. | |
| Rule 17a-3 | Securities and Exchange Commission rule that specifies the books and records related to the securities business that brokers and dealers have to make and keep current. | |
| Rule 17a-4 | Securities and Exchange Commission rule that specifies the time period that broker/dealers must preserve Rule 17a-3 records and other documents pertaining to the business. (See Rule 17a-3) | |
| Rule 19b-4 | Securities and Exchange Commission rule that provides procedures that self-regulatory organizations (SROs) follow to propose rule changes to the SEC. (See self-regulatory organization) | |
| Rules of Fair Practice | Rules designed to promote high standards of commercial honor and just and equitable principles of trade. |
