See: Dividend

Key Industry
Industry that is fundamental to a nation's economy and well-being. The defense industry, for instance, is a key industry because it provides the means in which to preserve a country's safety.

Kicker
Additional feature of a security that is intended to strengthen its marketability by offering the possibility of equity participation. For example, a bond may be convertible to stock if the shares reach a specified price. The kicker makes the bond more attractive to investors--the bondholder, in addition to interest payments, potentially gets ownership benefits of an equity security. Some other types of equity kickers are rights and warrants.

See: Convertible Bond; Equity; Right; Sweetener; Warrant

Killer Bees
Those who assist a corporation in fighting off a takeover bid--usually investment bankers. They concoct strategies to make the target corporation less enticing or more difficult to acquire.

See: Acquisition; Investment Banker; Takeover

Kiting
Practice of sustaining credit or of raising money by causing stock prices to rise through manipulative trading methods.

Know Your Customer
Securities industry ethics established by exchange rules, NASD Rules of Fair Practice and other authorities regulating broker-dealer practices. In order to satisfy the "know your customer" rules, when opening an account with a brokerage firm, the customer must provide information regarding his financial situation. Based upon the facts disclosed by the customer, the broker must have a reasonable belief that the recommendation they are making is suitable for the customer.

See: National Association of Securities Dealers; Rules Of Fair Practice;

Krugerrand
Gold bullion coin minted by the Republic of South Africa that contains one troy ounce of gold. They usually sell a little above their current gold content value. Although Krugerrands were banned for import into the US in 1985, existing coins in the US can be traded.

See: Gold Fix