K

• Kerb Dealings/Khangi Bhao
  • See Band Ke Bhao
• Kapli
  • A standard form used by the broker to inform the Stock Exchange of his transactions for the purpose of matching a settlement.
• Killer Bees (U.S.)
  • Law firms, proxy solicitors and public relations firm employed to help a company management fight off an unfriendly takeover.
• Kiting
  • The act of misrepresenting the value of a financial instrument for the purpose of extending credit obligations or increasing financial leverage. Kiting generally occurs when securities firms fail to deliver securities involved in buy and sell transactions in a timely manner (before the three-day settlement period). When this occurs, the firm failing to receive the securities is required to purchase the shortage on the open market and charge the delinquent firm any associated fees. The fraudulent act of kiting occurs when the firm fails to purchase the securities on the open market and maintains a short position, delays delivery, or takes part in transactions contrary to SEC regulations regarding the proper settlement of trades.
• Kiss Principle (U.S)
  • Advice given by old pros to neophyte brokers on how they should explain to investors such sophisticated investment concepts as options and arbitrage. Keep it simple, stupid.

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