In finance, the Kelly criteria is a mathematical formula for bet size that is widely used by investors to calculate how much money they should devote to each investment of their portfolio of assets. This strategy yields long term gains for the investors over other methods and is used by Billionaire Warren Buffet.Formula for the Kelly CriterionKelly Criterion Formula$$K\%=\frac{bp-q}{b}$$Where −K percent = The Kelly percentage, which is the proportion of the portfolio that will be gambled.b = the decimal odds, which are always equal to one.p = the chance of winning.q = the probability of losing, which is equal to ... Read More

Keep and pay is a form of bankruptcy exemption that allows you to keep your property. It allows a person to maintain an item such as a home or a vehicle, as long as the individual continues to make payments on the item.Key Points BrieflyKeep and Pay is a bankruptcy technique where the individual maintains the ownership of asset after filing of bankruptcy. The individual also agrees to a payment schedule and state their intentions in the courts.All of the exemptions in bankruptcy apply to assets that the filer is allowed to keep. All other nonexempt property may be liquidated ... Read More

The KBW Bank Index is a stock market index that measures the performance of the banking industry. Investment bank Keefe, Bruyette and Woods, that have a strong presence in the financial industry, created this index. It is consisted of a weighted average of 24 banking stocks that have been recognized leading indicators for this business group. The equities stand for significant national wealth development banks, regional banks, and savings organizations established in the United States of America.Below is an example of the past year data of Nasdaq KBW Bank Index −Source − BloombergMarketsKey Points SummaryKBW Index keeps an account of the ... Read More

Kangaroo Bonds are issued by foreign companies in the Australian market in the country under the Australian Dollar (AUD) and they have to comply with the rules and regulations of Australian Securities and Investment Commissions securities. They are also known as Matilda bonds.The primary authority to issue the Kangaroo bond lies with sovereign, universal, and agency (SSA) with others following suit. Kangaroo bonds can be issued by international banks, financial institutions, and overseas corporations as well as individuals. The recent trend has seen a decline in their numbers due to the lower ratings.What are the benefits of a Kangaroo Bond?With ... Read More

Kamikaze defense techniques have been used by Japanese Pilots in World War II, but they are a successful utility tool for firms to prevent hostile takeover. They are employed by an organization to preserve its self-interest, the financial position of the organization. The objective of this method is to reduce the target company’s demand to a hostile bidder by decreasing its market capitalization. This is implemented as a protective defense by most firms to prevent takeovers.Kamikaze Defense: What You Should KnowA kamikaze defense is a tactic that a target firm utilizes to escape being taken over by a hostile bidder. ... Read More

Traders use the Kairi Relative Index to determine whether it is appropriate to purchase or sell a certain asset. It analyzes the price's divergence from the simple moving average (SMA) of that asset's price over a given period of time, which is commonly 10 to 20 days.If the price of an asset is much higher than the asset's simple moving average over a specified time period, the Kairi Relative Index encourages selling. Whenever the price of a security is much lower than the simple moving average, the index supports purchasing the security.Kairi Relative Index in a GlanceThe Kairi Relative Index ... Read More

The Kagi chart is a graph that displays the price fluctuations of a certain asset over a period of time. A Kagi chart varies completely from a candlestick chart or other traditional forms of charts as it does not have a time axis, which helps it to display price movements more efficiently. Kagi charts are statistical tool used to help in technical analysis. It has been developed in Japan and used extensively worldwide by traders.What are the uses of Kagi Charts?A Kagi chart depicts the Price fluctuations of an item by using a number of vertical lines that are connected ... Read More

The isoquant curve is characterized by a concave shaped line graph that measures all the components of inputs, that contribute to a specific amount of output production. They are usually employed in the study of Microeconomics as a measure to evaluate the most commonly studied inputs of capital and labor, and the impact they have on manufacturing.An example illustration of an isoquant curve below −The isoquant curve aids corporations and enterprises in making modifications to inputs in order to optimize output and, therefore, profit.Companies and enterprises use the isoquant curve to make modifications in inputs to maximize manufacturing, and thus ... Read More

What is the Bond Pricing System?Bond pricing is a measurement system that helps traders and financial enthusiasts keep track of bond prices before trading bonds with other investors. The price that one has to pay while purchasing the bond is the price of the bond and it is dependent on several factors likeThe following are some of these characteristics −The existence of a coupon, or the absence of oneValue of the main and parReturn on investment (ROI)Periods of development till maturityBond Pricing − What factors impact it?Coupons$$\frac{1-(1+r/n)^{-n*t}}{r/n}+\frac{F}{{1+(1+r/n)^{-n*t}}}$$Formula to calculate coupon bond price.Some bands come with the coupons while others do ... Read More

Bollinger Bands are a technical trading system developed by John Bollinger in the early 1980s to help traders calculate price movements. These trading bands were developed in response to the necessity for adaptive trading bands and the detection that volatility was dynamic, rather than static as was normally assumed at the time.Source − Tradingview. Chart of Ketner Channel & Bollinger BandsBollinger Bands are a technical indicator that are used in many financial markets, including stocks, currency, commodities, and futures trading. They may be utilized in a variety of time frames, ranging from very short time periods to hourly, daily, weekly, and ... Read More