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

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Profit and Loss Statement (P&L)

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

Custodian bank

Learn what a custodian bank is.

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

Costs and Charges

The money you pay when investing.

Maturity value

What's the maturity value of a bond?

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Know Your Customer (KYC)