R

rating agency

A private company that grades the quality of a public or private borrower. A strong rating allows the borrower to borrow at the best rates, while a low rating forces it to pay higher rates, in addition to the unfavorable psychological effect of the rating.

risk (shareholder)

No matter what debts are contracted by the company, the shareholder’s risk is limited to his or her contribution. This is the principle behind joint stock companies.