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Know Your Customer (KYC)

Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

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Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.
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Custodian bank

Learn what a custodian bank is.
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DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.
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Yield to maturity

What is yield to maturity and why is it useful?
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Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.
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Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.
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Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.
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Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.
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Equity ETF

An exchange-traded fund that is comprised of a set of stocks.
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