What is '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.

More terms

Diversification

An investment strategy in which money is put into a variety assets.

Capital

Learn what financial capital means

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.

Holding Period Return

The amount of money generated by an asset during the time that it was held by an investor..

Securities

Bonds and stocks.

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.

American Depository Receipt (ADRs)

Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.

Know Your Customer (KYC)