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

Yield to maturity (YTM)

What is yield to maturity and why is it useful?

Withholding Tax

A tax deduction made at the source of the payment.

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).

Year to Date (YTD)

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

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

Diversification

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

SPAC

Find our what a SPAc or special purpose acquisition company is.

Compound interest

Understand what compound interest means and how it's calculated

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Know Your Customer (KYC)