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Financial GlossaryK Kappa. The ratio of the dollar price change in the price of an option to a 1% change in the expected volatility. Keogh Plan. A type of pension account in which taxes are deferred. Available to those who are self-employed. Key Industry. An industry that plays a critical role in a nation's economy. Key Man Life Insurance. Life insurance on the life of a key executive that is payable to the company. Companies buy key man life insurance in order to minimize the possible disruption that would be caused to a business on the death of a key employee. Keynesian Economics. An economic theory of British economist, John Maynard Keynes that active government intervention is necessary to ensure economic growth and stability. Kicker. An additional feature of a debt obligation that increases its marketability and attractiveness to investors. Killer Bees. Those who aid a company in fending off a takeover bid, usually investment bankers who devise strategies to make the target less attractive or more difficult to acquire. Kiting. Used in banking to refer to the practice of depositing and drawing checks at two or more banks and taking advantage of the time it takes for the second bank to collect funds from the first bank. Also refers to illegally increasing the face value of a check by changing the numbers on the check. In the context of securities, refers to the manipulation and inflation of stock prices. |