These example sentences are selected automatically from various online news sources to reflect current usage of the word 'kicker.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
In the finance world, a kicker is a feature that makes a security more attractive.
How It Works
Often, kickers are equity kickers, which are the right but not the obligation to buy shares of the issuer of a bond. These equity kickers come with the bond, making them more saleable to investors.
Sometimes, kickers aren't useful. For instance, they might offer the bondholder the right to buy shares at $8 a share, which only comes in handy if the shares are trading above $8. In those cases, the bond issuer might increase the coupon rate instead.
Why It Matters
Kickers get deals done. They make securities more saleable, and they help companies raise the capital they need to raise to grow. For investors, kickers can raise the gains or profits they might earn on a security.