is a glossary of terms that are, for the most part, unique
to the world of financial investigations, or terms that have
a different meaning than that which is commonly understood
when they are used in this context.
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.
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.
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
Kiting: 1) Practice
of sustaining credit or of raising money by causing stock
prices to rise through manipulative trading methods. 2) Orchestrated
bank deposit scheme where bad checks are deposited to cover
other bad checks.
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.
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
questions and suggestions.