Rate of Return: Return on investment, expressed as a percentage and calculated on an annual basis.

Rate Rebalancing: The theory behind rate rebalancing is that it is revenue-neutral because it is a shifting of subsidies from long-distance to local service with respect to telephone companies. A federal hearing on this issue will re-examine the proposed annual increase in local service rates to cover the disappearance of the subsidy from long-distance.

Real Estate Investment Trust (REIT): An investment trust that specializes in real estate-related investments including mortgages, construction loans, and land and real estate securities in varying combinations.

Real Interest Rate: The nominal interest rate less the rate of inflation. When inflation increases, the real rate of return will decline if nominal interest rates remain the same.

Recession: A downturn in economic activity, generally defined as at least two consecutive quarters of decline in a nation's gross national product.

Redemption: The purchase of securities by the issuer at a time and price stipulated in terms of the securities.

Redemption Price: The price at which debt securities or preferred shares may be redeemed, at the option of the issuing company.

Regina Economic Development Authority (The)-REDA: An organization established to attract new businesses to Regina. It also helps existing businesses expand by indicating what opportunities are available.

Registered Education Savings Plan (RESP): A plan that can be used to assist in meeting a child's future post-secondary education expenses. Contributions to an RESP are not tax deductible, but any income generated within the plan is sheltered from tax until withdrawn. At that point, tax is payable by the beneficiary child, who likely will be taxed at a much lower rate than the contributing parent or grandparent.

Registered Pension Plan (RPP): A plan sponsored by an employer and subject to specific government regulations, to which contributions by employers and employees are tax deductible within certain limits. Employees are not subject to tax on income or gains within such plans until the funds are withdrawn.

Registered Retirement Income Fund (RRIF): Much like a Registered Retirement Savings Plan in reverse. It does not permit annual contributions and the resulting tax deductions that an RRSP does, but requires the withdrawal of certain amounts each year. Otherwise an RRIF operates much the same way as an RRSP. Once amounts are withdrawn from a RRIF, they are subject to income tax at the recipient's marginal tax rate.

Registered Retirement Savings Plan (RRSP): The premier tax shelter available to Canadians. RRSPs allow an individual to save for retirement on a tax-deferred basis. Up to specified limits, amounts contributed to an RRSP are tax deductible, and income and gains realized in the plan accumulate free of tax until withdrawn, when they become taxable at the plan holder's marginal tax rate.

Reinstate: The process of putting back into force the benefits of an insurance policy.

Retractable: A feature that can be included in a new debt or preferred issue, granting the holder the option under specified conditions to redeem the security on a stated date - prior to maturity, in the case of a bond.

Rewrite: Exchange a current insurance policy for another type of policy retaining the insurer's original age.

Securities Acts: Provincial Acts administered by the Securities Commission in each province, which set down rules under which securities are sold.

Securities Administrator: A general term referring to the provincial regulatory authority (e.g. Securities Commission or Provincial Registrar) responsible for administering a provincial Securities Act.

Securities Advisor: A person or firm registered with applicable securities commissions to advise the public generally with regard to specific securities, often through publications.

Securitization: A process by which corporations pool various types of assets (credit cards, car payments, mortgages) into a single-purpose trust, then debt is issued against the trust with the funds passed back to the corporation. Debtholders' security is the pooled assets; they have little or no claim against the seller.

Senior Bond Issue: A corporate bond issue that has priority over other bonds as to its claim on the company's assets and earnings; for example, a first mortgage bond.

Serial Bond or Debenture: A bond or debenture issue in which a predetermined amount of principal matures each year.

Short-term Bond: A bond or debenture maturing within three years

Short-Term Debt: Company borrowings repayable within one year that appear in the current liabilities section of the corporate balance sheet. The most common short-term debt items are: bank advances or loans; notes payable; and the portion of funded debt due within one year.

Sinking Fund: A fund set up to retire most or all of a debt or preferred share issue over a period of time.

Split Rate Base: Establishment of a methodology by which to split the telephone companies' business into utility and competitive segments.

SSROs: Sponsoring Self-Regulatory Organizations.

Spread: The gap between bid and asked prices in the quotation for a security. Also a term used in Option Trading.

Stentor Alliance: An alliance of Canada's major telephone companies.

Stentor Revenue Settlement Plan: A plan whereby members of the Stentor Alliance share, in proportion to their contribution, revenues derived from interprovincial long-distance traffic.

Street Certificate: A stock certificate registered in the name of the investment dealer or stock broker in order to increase its negotiability, but beneficially owned by someone else.

Strip Bonds or Zero Coupon Bonds: Usually high-quality federal or provincial government bonds originally issued in bearer form, where some or all of the interest coupons have been detached. The bond principal and any remaining coupons (the residual) then trade separately from the strip, or detached coupons, both at substantial discounts from par.

Stripped Debentures: Debentures that have been separated from other securities such as warrants which, together with the debentures, were originally issued together as a unit.