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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use