FINANCIAL DICTIONARY-K

K
A Nasdaq stock symbol specifying that the stock has no voting rights

Kagi Chart
A type of chart developed by the Japanese in the 1870s that uses a series of vertical lines to illustrate general levels of supply and demand for certain assets. Thick lines are drawn when the price of the underlying asset breaks above the previous high price and is interpreted as an increase in demand for the asset. Thin lines are used to represent increased supply when the price falls below the previous low.

Kaizen
A philosophy that recognizes improvement in productivity as a gradual and methodical process. Kaizen is a Japanese term that literally means "change for the better". The concept of Kaizen encompasses a wide scope of ideas it involves making the work environment more efficient and effective by creating a team atmosphere, improving everyday procedures, ensuring employee satisfaction and making a job more fulfilling, less tiring and safer.

Kangaroos
Slang term for Australian stocks, it refers mostly to the stocks on the All Ordinaries index, which is composed of 280 of the most active Australian companies.

Kappa
Used in regression analysis, Kappa represents the ratio of the dollar price change in the price of an option to a 1% change in the expected price volatility.

Katie Couric Clause
A slang term for a proposed new Securities and Exchange Commission rule, formally known as the Executive Compensation and Related Party Disclosure, that would require publicly traded companies to disclose not only the salaries of their top five executives, but also those of top earning non-executives, including actors, directors and TV news anchors.
The term refers to former "Today Show" host Katie Couric, who became CBS's highest paid newscaster in April 2006, with a reported salary of US$15 million over five years. As of April 2006, this proposed rule has not been approved by the SEC.

Keepwell Agreement
A contract between a parent company and its subsidiary to maintain solvency and financial backing throughout the term set in the agreement.

Keiretsu
A Japanese term describing a loose conglomeration of firms sharing one or more common denominators. The companies don't necessarily need to own equity in each other.
Keltner Channel
A volatility based 'envelope' indicator that measures the movement of stocks in relation to an upper and lower moving-average band.

Keogh Plan
A defined-benefit plan or defined-contribution plan established by a self-employed individual for him/herself and his/her employees.

KES
In currencies, this is the abbreviation for the Kenyan Shilling.

Key Performance Indicators - KPI
A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their strategic and operational goals. KPIs vary between companies and industries, depending on their priorities or performance criteria. Also referred to as "key success indicators (KSI)"

Key Person Insurance
A type of life insurance policy that a company purchases on the life of the company's key executive.

Key Rate Duration
Holding all other maturities constant, this measures the sensitivity of a security or value of a portfolio to a 1% change in yield for a given maturity.
The calculation is as follows:

Keynesian Economics
An economic theory stating that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.

KHR
In currencies, this is the abbreviation for the Cambodian Riel.

Kickback
A slang term used to describe the payment of something of value to another individual with the goal of persuading or influencing their decision or performance in certain situations.

Kicker
A right, warrant, or some other feature added to a debt instrument to make it more desirable to potential investors.

Kicker Pattern
A two-bar candlestick pattern that is used to predict a change in the direction of the trend for an asset's price. This pattern is characterized by a very sharp reversal in price over the span of two candlesticks traders use it to determine which group of market participants is in control of the direction.

Kicking the Tires
Slang for doing the grassroots research of a prospective investment.

Kiddie Tax
A tax on children under 14 years old who earn income over $1,200. The extra income is taxed at the guardian's rate.

Kids In Parents' Pockets Eroding Retirement Savings - KIPPERS
A slang term referring to the predicament of individuals whose adult children are out of school and in their working years, but still living at home with the folks. These older parents face the challenge of managing their own finances and planning for retirement while dealing with the added expense of adult offspring living at home.

Kill
To cancel a trade or order that has been placed, but not filled.

Killer Application
Killer application or "killer app" is a buzzword that describes a software application that surpasses all of its competitors.

Killer Bees
Those who help a company fend off a takeover attempt with the use of defensive strategies.

Kiting
1. The act of misrepresenting the value of a financial instrument for the purpose of extending credit obligations or increasing financial leverage.

2. A fraudulent act involving the alteration or issuance of a check or draft with insufficient funds.

Kiwi
A slang term for the New Zealand dollar (NZD). It derives its name from New Zealand's national icon - a flightless bird called a kiwi - which is pictured on one side of the country's $1 coin.

Klinger Oscillator
A technical indicator developed by Stephen Klinger that is used to determine long-term trends of money flow while remaining sensitive enough to short-term fluctuations to enable a trader to predict short-term reversals. This indicator compares the volume flowing in and out of a security to price movement, and it is then turned into an oscillator

KMF
In currencies, this is the abbreviation for the Comoros Franc.

Knock-In Option
A latent option contract that begins to function as a normal option ("knocks in") only once a certain price level is reached before expiration.

Knock-Out Option
An option with a built in mechanism to expire worthless should a specified price level be exceeded.

Know Your Client - KYC
A standard form in the investment industry that ensures investment advisors know detailed information about their clients' risk tolerance, investment knowledge and financial position.

Kondratiev Wave
An economic theory created by Soviet economist Nikolai Kondratiev that states that Western capitalist economies are susceptible to high performance volatility.

Korean Composite Stock Price Indexes - KOSPI
A series of indexes that track the overall Korean Stock Exchange and its components. These indexes use a weighted average based on market calculation to calculate the value of the indexes.

KPW
In currencies, this is the abbreviation for the North Korean Won.

KRW
In currencies, this is the abbreviation for the Korean Won.

Kurtosis
A statistical measure used to describe the distribution of observed data around the mean

KWD
In currencies, this is the abbreviation for the Kuwaiti Dinar.

KYD
In currencies, this is the abbreviation for the Cayman Islands Dollar

KZT
In currencies, this is the abbreviation for the Kazakhstan Tenge