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K

Keogh plan
A tax-deferred retirement-savings plan for small-business owners or self-employed people who have earned income from their trade or business. Contributions to the Keogh plan are tax-deductible. See "Retirement Accounts for the Self-Employed."
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KFX Index
Index of the shares that attract the most foreign investors and have large trading volume on the Copenhagen Stock Exchange in Denmark.
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Kiddie tax
Special tax treatment for investment earnings of children under the age of 14. The child's investment income is reported by parents on IRS Form 8615 if it is greater than $1,400. Such income is taxed at the parents' top tax rate.
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Knock-in option
An option activated only when the price of the option's underlying instrument or market reaches a certain level above or below an agreed upon range.
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Knock-out option
An option that becomes worthless when the price of the option's underlying instrument or market reaches a previously agreed upon point.
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