What Does R Mean?
In securities trading, the letter R has a special meaning when added to the end of a ticker symbol. The letter R has a different meaning when applied as part of financial formula where it usually means some form of return.
On the NASDAQ exchange, R is used as a fifth letter in a company ticker symbol when the security being traded is a rights offering. Rights offerings allow shareholders the opportunity to purchase more shares directly from the company at a special price.
Key Takeaways
- The Letter R at the end of a NASDAQ ticker symbol means the security being quoted is a rights offering.
- Rights offerings that are sold by shareholders are traded on the open market.
- In financial formulas the letter R designates Returns.
Understanding Uses of R
When added to the end of a ticker symbol, the letter R designates that the shares in question are a rights offering. This is an issue of rights to a company's existing shareholders that entitles them to buy additional shares directly from the company in proportion to their existing holdings within a fixed time period called the subscription period, which typically lasts one to three months. In a rights offering, a subscription price at which each share may be purchased is normally at a discount to the current market price.
Existing shareholders are not obligated to buy additional shares. They may decline to exercise their rights or, if the rights are transferable, they may sell them on the open market. Such securities are quoted on stock exchanges and traded with varying degrees of liquidity depending on the company involved.
Nasdaq-listed securities usually have four or five characters. The ticker symbol by itself has four letters; if a fifth letter appears, it identifies the issue as other than a single issue of common or capital stock. The Nasdaq has a fifth-letter identifier for every letter of the alphabet; for example, "D" denotes a new issue, "F" denotes a foreign issue, and "Q" denotes bankruptcy.
Use of R in Financial Formulas
R is also a common symbol representing "return" in many financial formulas. There are many different types of returns and they are usually denoted with the upper or lower case letter "R," though there is no formal designation. If there are multiple returns used in a calculation, they are often given subscript letters.
In formulas, lower case "r" usually represents the required rate of return. RE is usually expected return. RM is usually the return on the market as a whole. Rf or Rrf is usually the risk-free rate of return. R1, R2, R3, Ri are returns in the first, second, third and -ith period, respectively.
For example, the equation for the Sharpe ratio, a measure of risk-adjusted return, is as follows:
Sr=σpRp−Rfwhere:Sr=SharpeRatioRp=PortfolioriskRf=Riskfreerateσp=Standarddeviationofportfolio
In this formula, Sr stands for Sharpe Ratio, Rp stands for Risk of the Portfolio being evaluated, and Rf stands for the Risk Free rate, and σp stands for the standard deviation of the portfolio's excess return above the risk free rate.
FAQs
1. : in or to a degree or quantity that satisfies or that is sufficient or necessary for satisfaction : sufficiently.
What is the meaning of R? ›
/ (ɑː) / nounplural r's, R's or Rs. the 18th letter and 14th consonant of the modern English alphabet. a speech sound represented by this letter, in English usually an alveolar semivowel, as in red.
What does enough is a enough mean? ›
One should be satisfied; stop, there should be no more.
What is another word for enough or sufficient? ›
Some common synonyms of sufficient are adequate, competent, and enough. While all these words mean "being what is necessary or desirable," sufficient suggests a close meeting of a need. When might adequate be a better fit than sufficient?
What is an example of enough? ›
[M] [T] I had enough time, so I didn't need to hurry. [M] [T] Does she have enough energy to take a long trip? [M] [T] I have a lot of money and enough time to use it. [M] [T] He spoke slowly enough for everyone to understand.
What is the rule of enough? ›
enough comes after adjectives and adverbs. I'm not tall enough to reach the top shelf. Your marks are good enough to study engineering at university. I couldn't write quickly enough and I ran out of time.
What does R stand for text? ›
"Are" is the most common definition for R on Snapchat, WhatsApp, Facebook, Twitter, Instagram, and TikTok. R. Definition: Are.
Why does R and R mean? ›
Meaning of R and R in English
abbreviation for rest and relaxation: a period of time when you stop working and rest: He went to his parents' house in Florida for a little R & R.
What does little R mean in slang? ›
If you ever receive an e-mail message that says "can you please little "r" me?" it means to reply just to that person (and not to everyone that's cc'd on the list).
What kind of word is enough? ›
Enough is a determiner, a pronoun or an adverb. We use enough to mean 'as much as we need or want'.
For all those who are in Christ Jesus, YOU ARE good, righteous, and enough because you are covered in the blood of Jesus, WHO MAKES YOU good, righteous, and enough. You are enough because God has arranged a salvation plan to make you enough.
Had enough definition? ›
phrase. If you say that you have had enough, you mean that you are unhappy with a situation and you want it to stop. I had had enough of other people for one night.
What does less than enough mean? ›
not sufficient; lacking in what is necessary or required: an insufficient answer. deficient in force, quality, or amount; inadequate: insufficient protection.
What is the opposite of enough? ›
Enough means; sufficient, adequate, ample, satisfactory, competent. Opposites of Enough; insufficient. inadequate. unsatisfactory.
What is the meaning of God is enough? ›
And our sufficiency, the apostle says, is not of ourselves but of God. This, then, is what I mean by God being enough. It is that we find in Him, in the fact of His existence, and of His character, all that we can possibly want for everything. God is, must be our answer to every question and every cry of need.
What is enough in life? ›
It's an acknowledgement that you have everything you need in this moment, and that you have the capability to meet your future needs. The concept of “enough” allows you to be happy right now. Not when you get a new job, or lose weight, or find a partner.
What is the origin of the word enough? ›
enough (adj.)
1300, from Old English genog "sufficient in quantity or number," from Proto-Germanic compound *ganog "sufficient" (source also of Old Saxon ginog, Old Frisian enoch, Dutch genoeg, Old High German ginuog, German genug, Old Norse gnogr, Gothic ganohs).
What is the meaning of enough in Oxford dictionary? ›
determiner. /ɪˈnʌf/ /ɪˈnʌf/ used before plural or uncountable nouns to mean 'as many or as much as somebody needs or wants' synonym sufficient.
