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

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.

Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.

Yield

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

Total Return

This is the measurement of a fund’s performance in a specific period.

Securities

Bonds and stocks.

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Diversification

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

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Know Your Customer (KYC)