  We construct symplectic and K\"ahler ray reduced spaces and discuss their
relation with the Marsden-Weinstein (point) reduction. This K\"ahler reduction
is well defined even when the momentum value is not totally isotropic. The
compatibility of the ray reduction with the cone construction and the
Boothby-Wang fibration is presented. Using the compatibility with the cone
construction we provide the exact description of ray quotients of cotangent
bundles. Some applications of the ray reduction to the study of conformal
Hamiltonian systems are described. We also give necessary and sufficient
conditions for the (ray) quotients of K\"ahler (Sasakian)-Einstein manifolds to
be again K\"ahler (Sasakian)-Einstein.
