A "kicker" is a feature of a financial security that provides the holder with an additional benefit. For example, a bond with a built-in "kicker" may offer a higher interest rate than a similar bond without the feature. In another example, a mutual fund with a "kicker" may offer a higher level of return if the fund outperforms its benchmark index.
What is a year end kicker? A "year end kicker" is a type of bond that pays a higher coupon rate during the final year of its term. This feature makes the bond more attractive to investors who are looking for higher yields. The higher coupon rate is typically used to offset the decrease in the bond's value that occurs during the final year of its term.
What is payment in kind? Payment in kind, or "PIK", is a type of interest payment in which the borrower makes interest payments by granting the lender additional securities instead of cash. PIK interest payments are often used by companies that are struggling to generate enough cash flow to make their regular interest payments. While PIK payments may give the borrower some short-term relief, they can ultimately make it more difficult to repay the loan, since the borrower's debt load is increasing.
Is mezzanine debt? Mezzanine debt is a type of debt that is typically used to finance the purchase or expansion of a business. This type of debt is usually issued by a private equity firm or venture capital firm, and is typically used to finance the growth of a company that may not be able to obtain traditional financing. Mezzanine debt is typically subordinated to other debt, which means that it is paid back after other debts have been paid off.
What types of commissions are there?
There are many types of commissions, but the most common are fixed, variable, and hybrid.
Fixed commissions are a set dollar amount that is charged each time a trade is executed. For example, a broker may charge a $10 commission for each trade.
Variable commissions are a percentage of the value of the trade. For example, a broker may charge a 1% commission on a trade worth $1,000.
Hybrid commissions are a combination of fixed and variable commissions. For example, a broker may charge a $10 fixed commission and a 1% variable commission on a trade worth $1,000. What is journalism kicker? A journalism kicker is a type of financial instrument that is used to finance journalism projects. It is a debt instrument that is structured in such a way that the interest payments are used to finance the journalism project. The project is typically a news website or a news organization.