Glossary

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Rate of change:A technical analysis technique used to construct an overbought-oversold oscillator.

Relative P/Ex :P/Ex of a stock / P/Ex of the market

Relative Performance: Movement of a stock price over a period compared to a market index (like the KSE 100). A performance below market means the stock shows relative weakness in price movement (underperformed the market) and a performance above market means the stock shows r

Relative Strength Index (RSI):An indicator that gives warnings about possible trend reversals. RSI is plotted on a vertical scale from 0 to 100. Values above 70 are considered to be overbought and values below 30 oversold.

Required rate of return:Minimum rate of return that the project must yield to justify its acceptance.

Resistance: A price or price zone above the current market line where selling power is enough to halt a further price increase.

Retained earnings:Net profits kept to accumulate in a business after dividends are paid.

Retention Ratio:Ratio of retained earnings to total earnings for the period.

Return on Capital Employed :Earnings before interest depreciation and amortization / Net assets

Return on Equity (ROE):(Profit after tax) / (average common equity)

Return on Total Assets :Earnings before interest and tax / Total Assets

Reversal patterns:Price patterns on a price chart that usually indicate that a trend reversal is taking place.

Rights Issue:The offer to present stockholders to purchase additional stock at a discount from present market prices.