/

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.

More terms

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.

Equity

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

Diversification

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

Limit order

Learn what a limit order is and how to use it to make the most of your portfolio.

Hypothesis Testing

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

NYSE

The world's largest stock exchange. Wall St HQ.

Ponzi Scheme

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

Income statement

A summary of a company's income and expenses over a set period of time.

Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.

You’re just minutes away from commission-free investing

When you invest, your capital is at risk

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

© 2025 Freetrade, All rights reserved. The Apple logo is a trademark of Apple Inc. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.