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Quoted
In relation to a security other than a listed security, means a security issued outside of Kenya but traded on a securities exchange.

Rate of Return on a Share
This is the percentage change in the value of an investment in a share over a specified time period. The total return includes dividends.

Record
Includes a record in writing

Record of Depositors
Means    a   record   provided   by   a    central depository to an issuer under section 36 which contains the particulars specified in subsection(3) of the said section.

Redemption Yield
This  takes  into  account  not  only  the  annual interest  receivable  but  also  any  capital  profit/ loss on redemption of the security.

Registrar
Has the meaning assigned to it in Section 2 of the companies Act.

Related Company
Means a holding company, a subsidiary of another company or a subsidiary of the holding company of another company.

Redeem
To sell mutual fund shares back to the fund for cash.

Registrar of Companies
The firm hired by a company or a mutual fund to keep the official record of its registered shareholders. This record includes a shareholder's name and address and the number of shares owned. The registrar also handles the administrative work involved with the purchase and sale of shares.

Reinvestment
To use dividends and capital gains distributions used to purchase more shares.

Rights issue
A rights issue is an issue of shares to existing shareholders in proportion to their existing shareholding.
Rights issues are usually used when the company wishes to raise further capital from its existing

shareholders.
A shareholder who is provisionally allocated shares under a rights issue may sell his/her right to acquire the shares by renouncing their allotment in favor of another person.

Representative
Means a representative of any person licensed by the Authority who is in the employment of the licensed person and who plays a critical role in that company, and includes a  trader, director, general  manager,  analyst, or any other person employed  by  the licensee who plays  a  critical role.

Reverse Yield Gap
This arises whenever the yield on gilt exceeds the yield on shares as a result of high inflation and high interest rate.   The normal situation is that the yields on shares should be higher than the yield on bonds because the shareholders need to be compensated for additional risk that they bear.

Rights offer
Is an offer to existing shareholders of securities to subscribe for or purchase further securities in proportion to their holdings made by means of the issue of a renounce able letter or other negotiable document which may be traded (as “nil paid” rights) before payment for the securities is due.

Ruling Price
Means the closing price at the last trading session at which that security was traded before the day on which an announcement is made.

Risk
The uncertainty   associated with   the end-of period value of an investment in an asset or portfolio of assets.

Risk Free Borrowing
This involve of borrowing funds that are to be repaid with a known rate of interest.

Risk Free Lending (Investing)
This involves investing in a risk free asset.

Risk Premium
The    price   or   compensation   for   assuming additional risk. Investors tend to avoid risk
Unless;    they   are    rewarded   for   assuming additional risk.

Risk-Neutral Investor
This is a kind of investor who has no preference between investments with varying levels of risk assuming that the investments offer the same expected return.

Risk Seeking Investor
Is an investor who prefers an investment with more risk, assuming that both investments offer the same expected return.

Risk Tolerance
This is the trade off between risk and expected return as demanded by a particular investor.

Risk less Asset
An asset whose return over  a  given  holding period is certain and known at the beginning of the holding.