What Is Keynesian Economics? Keynesian economics is a macroeconomic theory of total spending in the economy and its effects on output, employment, and inflation. It was developed by British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression. The central belief of Keynesian economics is that government intervention can
What Is Key Person Insurance? Key person insurance is a life insurance policy that a company purchases on the life of an owner, a top executive, or another individual considered critical to the business. The company is the beneficiary of the policy and pays the premiums. This type of life insurance is also known as “key
What Is Key Rate Duration? Key rate duration measures how the value of a debt security or a debt instrument portfolio, generally bonds, changes at a specific maturity point along the entirety of the yield curve. When keeping other maturities constant, the key rate duration is used to measure the sensitivity in a debt security’s price
What Is the Kuwait Investment Authority? The term Kuwait Investment Authority (KIA) refers to a government-owned corporation responsible for managing the sovereign wealth fund of Kuwait. Founded out of the Kuwait Investment Board in 1982, it was established to manage government revenue, derived primarily from the excess proceeds Kuwait earns from its oil reserves. The
What Is a Kickback? A kickback is an illegal payment intended as compensation for preferential treatment or any other type of improper services received. The kickback may be money, a gift, credit, or anything of value. Paying or receiving kickbacks is a corrupt practice that interferes with an employee’s or a public official’s ability to make
What Is a Kicker? A kicker is a right, exercisable warrant, or other feature that is added to a debt instrument to make it more desirable to potential investors by giving the debt holder the potential option to purchase shares of the issuer. In real estate, a kicker is an added expense that must be
What Is a Kicker Pattern? A kicker pattern is a two-bar candlestick pattern that predicts a change in the direction of an asset’s price trend. This pattern is characterized by a sharp reversal in price over the span of two candlesticks. Traders use it to determine which group of market participants is in control of
What Is Kicking the Tires? Kicking the tires is a colloquial expression that refers to performing minimal research into an investment, as opposed to conducting a thorough and rigorous analysis. The process usually includes a cursory reading of the company’s annual report, looking at its historical earning and revenue performance, considering the company’s competitive strengths
What Is the Kijun Line (Base Line)? The Kijun Line, also called the Base Line or Kijun-sen, is one of five components that make up the Ichimoku Cloud indicator. The Kijun Line is typically used in conjunction with the Conversion Line (Tenkan-sen) to generate trade signals when they cross. These signals can be further filtered
What Is a Killer Application? A killer application—or a killer app—is a software program with a user-interface perceived as innovative enough to influence computing trends and sales. The term dates to the early development of personal computers and software in the 1980s, when accounting, database, and word-processing applications were first being developed for mass use.
