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K - When the fifth letter of a NASDAQ stock symbol is a
K, the represented stock has no voting rights
Kansas City Board of Trade - An exchange located in Kansas City,
Missouri. This exchange is a futures and options exchange for number 2
red wheat. Abbreviated at KCBT.
Kappa - Proportional measure of the dollar price change in an option
price to a 1% change in the expected price volatility.
KCBT - Abbreviation for the Kansas City Board of Trade.
Keepwell Agreement - Promise by a corporate parent to maintain solvency
in a subsidiary.
Keogh Plan - A tax-deferred private pension account available to
self-employed individuals for the purpose of saving and investing money.
Kerb Trading - Trading after an official exchange closing.
Kick-In Option - A knock-in option with the instrike in-the-money.
Kick-Out Option - A knock-out option with the outstrike in-the-money.
Kicker - A right, warrant, or other low value security added to a debt
or stock offering to enhance the market response of the issue.
Killer Bees - Often referring to risk arbitrage, slang term for people
or institutions that assist a target company in avoiding a takeover bid.
Killer Bees are usually investment bankers who utilize strategies such
as making the target more difficult to acquire, or making the target
less attractive.
Kiretsu - A network of Japanese corporations
Kitchen Sink Bond - An obligation of a Secured Investor Trust which may
be formed to provide an outlet for Collateralized Mortgage Obligation
tranches that are not widely held.
Knock-In Cap Option - An option which pays off only if the underlying
rate falls by a designated amount before rising through the cap strike.
Knock-In Option - Down-and-in or up-and-in barrier options triggered at
specific price or rate levels.
Knock-In Premium Cap - A cap on a floating rate with the cap strike
substantially above current rates and a trigger rate that must be hit
before any premium payments are required. The premium will increase as
the trigger rate is closer to the cap strike.
Knock-In Risk Reversal - An equity risk reversal with one or more
knock-in option components.
Knock-Out Option - Down-and-out or up-and-out puts and calls embedded in
a risk management instrument or traded separately.
Knock-Out Premium Cap - A cap on a floating rate with a premium trigger
rate below current rates. If the reference index rate drops below the
trigger rate, the cap holder stops making premium payments but maintains
full cap protection.
Knock-Out Swap - A swap which terminates if an interest rate moves above
or below an agreed upon level.
Knock-Out Warrant - Warrant that combines a long call or a long call
spread with a knock-out put that assures the holder of a minimum return
unless the price of the underlying exceeds the knock-out trigger price
at some time during the life of the option. If the knock-out price is
reached, the put expires and the put's minimum return protection expires
with it.
Know Your Customer (KYC) Rule - A requirement that a broker or dealer
recognize the investment objectives of a customer and actively
discourage transactions which may be inappropriate for the client-or for
the broker/dealer.
Kuala Lumpur Commodities Exchange - A commodity exchange in Malaysia for
trading futures in crude palm kernel oil, crude palm oil, rubber, tin,
and cocoa. Abbreviated as KLCE.
Kuala Lumpur Options and Financial Futures Exchange - An exchange
offering derivative products based on underlying instruments offered on
the Kuala Lumpur Stock exchange. Abbreviated as KLOFFE.
Kuala Lumpur Stock Exchange - The sole stock exchange in Malaysia. This
exchange was established in 1973. Abbreviated as KLSE. |
