We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.
© 2016 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Kickbacks

Definition:

It's a dark wharf at midnight. Suddenly, a car squeals up by the water's edge. A man in a suit gets out and hands over a briefcase full of cash. The man? He's an executive with a big company.

The next day, he benefits from a deal that's harmful to another company. The guy representing the other company? He looks an awful lot like the guy who left at midnight with a case full of moolah.

Bad guy #2 basically accepted money under the table to make a deal go a certain way. It's completely illegal in corporate America... but it still happens.