Investor Glossary-kickerInvestor Glossary-kickerInvestor Glossary-kickerInvestor Glossary-kickerInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Kicker

The HTML to link to this page
 

Generically, a kicker is a condition that causes some kind of increase or augmentation. In investing, kicker is most often used in terms of an equity kicker for some form of debt. Debt without an equity kicker does offer investors the advantage of guaranteed payments, but no opportunity to participate in the success of the company. By including an equity kicker in the form of stock rights, warrants, or some other equity feature, the equity kicker makes the security more attractive to investors. Assuming the equity kicker at some point is converted into stock, the investor can receive dividends or benefit from capital appreciation. For the issuing company, an equity kicker reduces service costs, because investors are willing to forego some guaranteed interest in return for the equity kicker. In fact, the equity kicker may be a de facto requirement where companies are new or struggling and can only sell debt by including an equity kicker. Debt with an equity kicker is subordinated debt and is usually relatively more risky than ordinary debt. From an accounting standpoint, an equity kicker raises numerous issues, since the hybrid security it creates is not easily classified as either debt or equity.



Rate this kicker definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: diluted share, phantom income, labor relations, liquidity ratio, APR, per diem, ex-dividend date, ex-dividend, inflation, FICO score, option premium, average price per share, cancelled check, VIX, deferred revenue, covered put, class C shares, quality assurance, irrevocable trust, command economy, in escrow, wholly-owned subsidiary, retained earnings, debt service coverage, balance sheet, real GDP, required rate of return, 1031 exchange, minority interest, dividends payable, EBITDA, deferred tax, risk management, Key Rate Duration, 144a, annual return, implied volatility, limit order, LIBOR, 1035 exchange, margin rate, stock split, open position, 401a, reverse mortgage, current ratio, Zero Cost Collar, FTSE, stock market close


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use