What is 'Know Your Customer (KYC)'? Definition & meaning

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

More terms

Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.

Yield

Income from an investment as a percentage of its current price.

Collective investment scheme

Learn what's a collective investment scheme

Maturity value

What's the maturity value of a bond?

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Volatility

A measure of how much the prices of an asset or index vary over time.

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Year to Date (YTD)

A period of time that starts with the first day of the current calendar year and ends with today.

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

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Know Your Customer (KYC)