Key Indicators
key indicator is an economic date pointing to the direction in which the economy of the country is moving. These comprises of : Gross National Product, Gross Domestic Product, Agricultural Production, Foodgrains Production, Industrial Production, Electricity Generated, Wholesale Price Index, Consumer Price Index for Industrial Workers, Money Supply (M3), Imports at Current Price, Exports at Current Price, Foreign Currency Assets, and Exchange Rate (Rs:US$).
Khoka
khka is a Gujarati term meaning the empty shell of a coconut, khoka is the non – convertible portion of a partly convertible debenture. Not only may the non – convertible portion carry an unattractive rate of interest (for example, 12.5%), it is extremely difficult to sell it in the debenture market, and furthermore, if it is sold , the discount may be as high as 40%. to remove this difficulty of holding the khoka , the SILK scheme has been introduced.
Kicker
An incentive to a buyer of a debt instrument, in the form of an attached equity warrant, a loyalty coupon offering a small amount of cash if the original investor holds on to the instrument for the full term, or if regulations permit, conversion into equity of a non – convertible bond. Kickers are also called sweeteners. The Secured Premium Notes (SPNs) issued for the first time by TISCO, had a kicker in the promise of one equity share at a pride of Rs. 100 only for those who subscribed to them.
Know Your Customer
The US rules for stock dealing has a fair practice for dealers that before dealing with a customer the stockbroker must find out the client’s other stockholdings and his financial situation and needs. The customer’s risk – bearing ability, his investment horizon, his financial liquidity, are important factors in a good broker – client relationship.
Just as the stockbroker should know about his client the investor must know about himself thoroughly and have his investment objectives defined clearly, as also know exactly how far he is wiling hand bale to bear risks.