Glossary

Return on equity (ROE) is a finance term also used in enterprise risk management (ERM) term meaning net income divided by net worth.

A target return on equity measure in which the denominator is adjusted depending on the risk associated with the instrument or project.

Return premium is the amount due the insured if the actual cost of a policy is less than what the insured has previously paid.

Reverse merger refers to a transaction in which an existing shell company (i.e., a publicly traded company with few or no actual business operations) acquires a private company with actual business operations.

A reverse takeover is a merger between a Chinese company and a dormant US shell company listed on a US exchange—as a back-channel way of listing a Chinese company in the United States. US accountants, lawyers, and bankers who have helped facilitate such transactions are subjects of ongoing federal probes.

Reversionary refers to a contract providing benefits only if the beneficiary is living at the time of death of the insured.

A revision restatement is a financial restatement revision that pertains to a small, relatively inconsequential misstatement or accounting error.

Revocable beneficiary is a provision contained in most life insurance policies that allows the policy owner to remove or change a beneficiary without obtaining the beneficiary's consent.

A rider is a form that is attached to a surety or fidelity bond that alters the provisions of the bond form in some manner.

Ridesharing consists of mobile device applications available to members to link automobile owners driving their personal autos to transport fee-paying passengers for short trips (examples are Uber and Lyft).