What is '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.

More terms

Total Return

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

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

Net Income (NI)

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

Zero coupon bonds

What is a zero coupon bond?

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Dirty price

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

Junk Bond

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

Synthetic ETFs

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

NYSE

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

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