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

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).

Rate of Return

Profit on an investment, expressed as a percentage of the investment.

Limit order

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

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.

Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.

Volatility

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

Custodian bank

Learn what a custodian bank is.

Margin call

Learn what a margin call stands for in financial terms.

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

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Know Your Customer (KYC)