What Is Junior Debt? Junior debt refers to bonds or other forms of debt issued with a lower priority for repayment than other, more senior debt claims in the case of default. Because of this, junior debt tends to be riskier for investors, and thus carries higher interest rates than more senior debt from the
What Is Junior Equity? Junior equity is stock issued by a company that ranks at the bottom of the priority ladder in terms of ownership rights. Its owners are the last in line to receive certain payouts, such as dividends or reimbursements in cases of bankruptcy. Common stock is a type of junior equity. It
What Is a Junior Security? The term junior security refers to a security with a lower priority than others. Put simply, junior security is subordinate to any other type of security. This means that junior security holders get paid only after those who own senior securities if and when a company goes bankrupt or is
What Are Junk Fees? Junk fees are a series of charges that a lender imposes at the closing of a mortgage. These charges are often unexpected by the borrower and not clearly explained by the lender. This surprise factor can lead to the impression that these fees are excessive and tacked on to other legitimate
What Is a Junk Bond? Junk bonds are bonds that carry a higher risk of default than most bonds issued by corporations and governments. A bond is a debt or promise to pay investors interest payments along with the return of invested principal in exchange for buying the bond. Junk bonds represent bonds issued by
What Is the Kairi Relative Index (KRI)? The Kairi Relative Index is a technical analysis metric that traders use to indicate when it is time to buy or sell an asset. It measures the deviation of the price from the simple moving average (SMA) of that asset’s price over a period of time, typically 10
What Is Kaizen? Kaizen is a Japanese term meaning change for the better or continuous improvement. It is a Japanese business philosophy that concerns the processes that continuously improve operations and involve all employees. Kaizen sees improvement in productivity as a gradual and methodical process. The concept of kaizen encompasses a wide range of ideas.
What Is a Kamikaze Defense? A Kamikaze defense is a defensive strategy sometimes resorted to by a company’s management to prevent a takeover by another company. While these strategies are named after the suicidal kamikaze attacks used by Japanese pilots during World War II, they rarely destroy the company. Nevertheless, a kamikaze defense involves taking
What Is Kanban? Kanban is an inventory control system used in just-in-time (JIT) manufacturing. It was developed by Taiichi Ohno, an industrial engineer at Toyota, and takes its name from the colored cards that track production and order new shipments of parts or materials as they run out. Kanban is a Japanese word that directly
What Is a Kangaroo Bond? A kangaroo bond is a type of foreign bond issued in the Australian market by non-Australian firms and is denominated in Australian currency. The bond is subject to the securities regulations of Australia. A kangaroo bond is also known as a “matilda bond.” Key Takeaways Kangaroo bonds are issued in
