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Kenyan Shilling (KES) Key takeaways The Kenyan shilling (KES, commonly abbreviated KSh) is Kenya’s national currency and is divided into 100 cents. Managed by the Central Bank of Kenya, the shilling floats against other currencies. KES is one of the more stable currencies in East Africa but has generally weakened against the U.S. dollar over…

Keogh Plan What is a Keogh plan? A Keogh plan is a tax‑deferred, qualified retirement plan designed for self‑employed individuals and unincorporated businesses. Established by the Self‑Employed Individuals Tax Retirement Act of 1962, Keogh plans can be either defined‑contribution or defined‑benefit plans and generally allow higher contribution limits than IRAs and many other small‑business retirement…

Kenney Rule What it is The Kenney Rule is a guideline for assessing an insurer’s financial strength by comparing its premium-related liabilities to its policyholders’ surplus. Developed by Roger Kenney for property and casualty insurers, it helps regulators and companies judge insolvency risk and capital adequacy. Key idea The rule compares unearned premium reserves (or…

Keltner Channel A Keltner Channel is a volatility-based technical indicator made of three lines plotted around price to help identify trend direction, momentum, and potential support/resistance. The indicator uses an exponential moving average (EMA) as the middle line and average true range (ATR) to set upper and lower bands that expand and contract with volatility….

Kelly Criterion The Kelly Criterion is a formula for sizing bets or investments to maximize long‑term wealth growth. Developed by John L. Kelly Jr. in 1956, it was originally applied to gambling and later used by some investors to guide position sizing. Core idea The criterion computes the optimal fraction of your capital to allocate…

Kellogg School of Management What is Kellogg? The Kellogg School of Management is Northwestern University’s graduate business school, based in Evanston, Illinois. Founded in 1908 (originally the School of Commerce) and renamed in 1979 after a gift from the John L. and Helen Kellogg Foundation, Kellogg is known for interdisciplinary learning, global programs, and strong…

Keiretsu Keiretsu is a Japanese business network in which manufacturers, suppliers, distributors and sometimes financiers form close, long-term alliances. Member companies remain operationally independent but often hold small equity stakes in one another and cooperate on financing, procurement, production and distribution. The term literally means “headless combine.” Origin and context Keiretsu emerged after World War…

Keepwell Agreement Key takeaways A keepwell agreement is a written commitment from a parent company to support a subsidiary’s financial health and solvency for a specified period. It is used as a credit enhancement to improve a subsidiary’s ability to borrow and obtain favorable supplier or investor terms. Keepwell agreements are often treated as comfort…

Understanding Prepayment: Definition, Types, and Potential Penalties Key takeaways Prepayment means settling a debt or paying for goods/services before the scheduled due date. Individuals and businesses prepay for different reasons: reduce interest costs, simplify accounting, or secure goods/services. Some loans include prepayment penalties; laws like Dodd–Frank and many state statutes limit or prohibit these for…

What is the KBW Bank Index? The KBW Bank Index (symbol: BKX) is a benchmark stock index that tracks the performance of 24 major U.S. banking companies. Created to serve as a bellwether for the banking sector, it represents a mix of large national money-center banks, larger regional banks, and thrift institutions while excluding companies…

Kazakhstan National Fund What it is The Kazakhstan National Fund is a sovereign wealth fund managed by the National Bank of the Republic of Kazakhstan. It was created to manage and preserve revenue from the country’s natural-resource sector. Purpose and funding Established in 2000 as a stabilization and savings vehicle. Financed primarily by surplus revenues…

Karl Marx: Life, Theories, and Influence Key takeaways Karl Marx (1818–1883) was a German philosopher, economist, and social theorist best known for founding Marxism and coauthoring The Communist Manifesto and writing Das Kapital. He developed critiques of capitalism centered on exploitation, surplus value, and historical materialism. Marx’s ideas shaped political movements and academic fields (sociology,…

Kappa What is kappa (vega)? Kappa—more commonly called vega—is a risk measure for options that quantifies how an option’s price responds to changes in the implied volatility of its underlying asset. It shows the amount an option’s price is expected to change for a one percentage-point change in implied volatility. How it works Implied volatility…

Kangaroos Key takeaways “Kangaroos” is a colloquial term for Australian equities that make up the All‑Ordinaries Index and for foreign bonds issued in Australia and denominated in Australian dollars (AUD). The All‑Ordinaries Index is a market‑capitalization‑weighted benchmark of roughly 500 of the most actively traded Australian companies. Kangaroo bonds are AUD‑denominated foreign bonds issued in…

Kangaroo Bond Overview A kangaroo bond (also called a matilda bond) is a bond issued in the Australian market by a non-Australian entity and denominated in Australian dollars (AUD). It is subject to Australian securities regulation and gives foreign issuers access to Australian investors and funding in AUD. How it works A foreign corporation, financial…

Kanban: A Practical Guide Key takeaways * Kanban is a visual pull system originally developed at Toyota to support just-in-time production. * It uses visual signals (cards, boards) to trigger replenishment and keep work flowing. * Core goals: limit work-in-progress (WIP), expose bottlenecks, and continuously improve processes. * Kanban applies to manufacturing, procurement, and knowledge-work;…

Kamikaze Defense: What It Is, How It Works, and Common Types Key takeaways * A kamikaze defense is an extreme, last-resort tactic a target company’s management can use to deter a hostile takeover by deliberately making the company less attractive. * Common forms include selling valuable assets (“selling the crown jewels”), deliberately damaging operational value…

Kaizen: The Japanese Philosophy of Continuous Improvement What is Kaizen? Kaizen is a Japanese business philosophy and practical system that promotes continuous, incremental improvement across an organization. Rather than seeking one-time, large-scale change, kaizen focuses on many small, sustained improvements that compound over time to increase efficiency, quality, and employee engagement. Core principles Know your…

Kairi Relative Index (KRI) Key takeaways * The Kairi Relative Index (KRI) measures how far the current closing price is from its simple moving average (SMA), expressed as a percentage. * Extreme positive readings suggest overbought conditions (potential sell); extreme negative readings suggest oversold conditions (potential buy). * “Extreme” levels depend on the asset’s volatility—volatile…

Kagi Chart: What It Is, How It Works, and How to Use It Key takeaways * Kagi charts are time-independent charts that change direction only when price moves by a preset reversal amount. * Line thickness (or color) changes when price breaches a prior Kagi high (thick/green) or low (thin/red), producing entry/exit clues. * Reversal…

K-Ratio: Meaning, Formula, Calculation, and Example What is the K-Ratio? The K‑ratio, developed by Lars Kestner, measures the consistency (steadiness) of an investment’s returns over time. It is based on a regression of the logarithm of a Value‑Added Monthly Index (VAMI) series and captures both the trend (return) and the uncertainty of that trend (risk)….

K‑Percent Rule: Definition and Overview The K‑Percent Rule is a monetarist policy proposal, most closely associated with economist Milton Friedman. It calls for a central bank to expand the money supply by a fixed percentage (the “K” rate) each year, regardless of short‑term economic conditions. The goal is to provide predictable, rules‑based monetary growth to…

Justified Wage: What It Means, How It’s Determined, and Examples What is a justified wage? A justified wage is a level of pay that balances two needs: attracting and retaining qualified workers and remaining affordable for the employer. It reflects market conditions and the specific skills, experience, responsibilities, and contributions required for a role. Often…

Just-in-Time (JIT) Inventory System What JIT Is Just-in-Time (JIT) is an inventory and production strategy that aligns material orders from suppliers directly with production schedules. Companies using JIT receive goods only as they are needed for manufacturing or sale, reducing inventory carrying costs and waste. JIT is closely associated with the Toyota Production System (TPS)…

Just in Case (JIC): Definition, How It Works, and Real-World Use What is Just in Case (JIC)? Just in Case (JIC) is an inventory-management strategy in which companies keep larger-than-minimum inventories on hand to avoid stockouts. The goal is to ensure product or material availability when demand spikes or supply disruptions occur, even though holding…

Just Compensation Overview Just compensation is the money paid to a property owner when the government legally takes private property for public use. This remedy comes from the Fifth Amendment’s Takings Clause and is meant to place the owner, as nearly as possible, in the same financial position they would have occupied if the taking…

Jurisdiction Risk Jurisdiction risk is the additional risk that arises from operating, investing, lending, or borrowing in a foreign country or legal jurisdiction. It encompasses legal, regulatory, political, and economic factors that can affect transactions or asset values when they fall under the laws or controls of another country. Key takeaways Jurisdiction risk arises from…

Juris Doctor (JD): Overview A Juris Doctor (JD) is the standard professional law degree in the United States and many common-law jurisdictions. It is typically required to sit for a state bar exam and practice law. JD programs combine doctrinal coursework, legal writing and research, and practical training to prepare graduates for legal practice. Key…

Junk Bond: High Risk, High Yield Explained What is a junk bond? Junk bonds—also called high-yield bonds—are corporate debt securities rated below investment grade by credit agencies. They are issued by companies with weaker credit profiles (for example, startups, turnaround situations, or highly leveraged firms) and offer higher yields to compensate investors for an elevated…

Junior Security: Definition, How It Works, and Example What is a junior security? A junior security is a financial claim that ranks below other claims (senior securities) in priority for repayment. If a company is liquidated or defaults, holders of junior securities are paid only after all senior creditors and security holders have been paid….

Junior Mortgage: What it Means and How It Works Key takeaways A junior mortgage is any mortgage recorded after a first (senior) mortgage on the same property—commonly a second mortgage, home equity loan, or HELOC. In foreclosure, senior liens are paid before junior liens; junior lenders face greater risk of not being repaid. Junior mortgages…

Junior Equity: Meaning, How It Works, Example, Advantages Key takeaways Junior equity is ownership in a company that ranks lowest in priority for payouts. Common stock is the most common form of junior equity. In liquidation or bankruptcy, bondholders, preferred shareholders and other creditors are paid before junior equity holders. Junior equity carries greater downside…

Junior Debt — What It Is and How It Works Junior debt, also called subordinated debt, refers to loans or bonds that rank below senior debt in the priority of repayment. If a borrower defaults or is liquidated, senior creditors are paid first; junior creditors are paid only after senior claims are satisfied. Because of…

Junior Company: Definition, How It Works, and What to Know What is a junior company? A junior company is a small, early-stage firm—typically in natural-resource exploration (minerals, oil, gas)—that is developing or seeking to develop a resource deposit. Juniors resemble startups: they often need outside capital to fund exploration and development or seek to be…

Junior Capital Pool (JCP) What is a JCP? A junior capital pool (JCP), also known as a capital pool company (CPC), is a corporate structure that lets early‑stage ventures raise money by issuing shares before they have begun commercial operations. A JCP is effectively a shell corporation that holds cash but has no active business…