Mortgage Backed Securities (MBS)
In the financial world, there are plenty of ways to grow a portfolio. Mortgage-backed securities are instruments that offer a variety of benefits to those hoping to lend, invest and borrow. Here's a quick introduction to how they work, who might stand to benefit from using them and their greater role in the secondary lending market. What Are Mortgage-backed Securities...
Kappa
What is 'Kappa' One of the "Greeks," kappa is the ratio of the dollar price change of an option to a 1% change in the expected price volatility (also called implied volatility) of the underlying asset. Kappa tells investors how much an option's price will change for a given change in implied volatility, even if the actual price of the...
Knowledge Capital
Definition Knowledge management is the process of creating, sharing, using and managing the knowledge and information of an organisation. It refers to a multidisciplinary approach to achieving organisational objectives by making the best use of knowledge. What is 'Knowledge Capital' An intangible asset that comprises the information and skills of a company's employees, their experience with business processes, group work and on-the-job...
Knowledge Economy
DefinitionThe knowledge economy is the use of knowledge to generate tangible and intangible values. Technology, and in particular, knowledge technology, helps to incorporate part of human knowledge into machines. This knowledge can be used by decision support systems in various fields to generate economic value. Knowledge economy is also possible without technology. Knowledge Economy What is 'Knowledge Economy'...
Krugerrand Gold Coin
What is 'Krugerrand Gold Coin' A gold coin minted by the Republic of South Africa. Krugerrand gold coins contain exactly one troy ounce of gold. This coin was first minted in 1967 in order to stimulate the market for South African gold. It is considered legal tender within the country. Explaining 'Krugerrand Gold...
Key Ratio
What is 'Key Ratio' A mathematical ratio that illustrates and summarizes the current financial condition of a company. Key ratios can be used to easily obtain an idea of a company's financial status. Companies that are in good condition financially will have superior ratios to those that are performing poorly. Explaining 'Key Ratio'...
Keynesian Economics
DefinitionKeynesian economics are the various macroeconomic theories about how in the short run – and especially during recessions – economic output is strongly influenced by aggregate demand. In the Keynesian view, aggregate demand does not necessarily equal the productive capacity of the economy; instead, it is influenced by a host of factors and sometimes behaves erratically, affecting production, employment,...
Kiting
What is kiting and how does it work Kiting is a type of fraud where a financial instrument is used to obtain unauthorized credit. Kiting can take two forms: check kiting and money market kiting. Check kiting occurs when a person writes a check against their account, but the funds are not yet in the account. The person then deposits the...
Keidanren
What is 'Keidanren' A Japanese abbreviation for the Japan Federation of Economic Organizations. The Keidanren was created in 1946 to address the issues and concerns of Japanese businesses in the postwar world. The organization consisted of over 1,000 Japanese businesses, over 50 of which were foreign firms. Explaining 'Keidanren' The Keidenran was...
Kickback
What is a 'Kickback' A kickback is the payment of something of value to a recipient as compensation or reward for providing favorable treatment to another party. Explaining 'Kickback' A kickback can be legal or illegal. A common form of kickback, in the context of investing, is a commission rebate for investors who trade frequently. Further Reading Competition through commissions and kickbacks -...