What is '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

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

Withholding Tax

A tax deduction made at the source of the payment.

Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.

Ponzi Scheme

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

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

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.

Yield to maturity

What is yield to maturity and why is it useful?

Income statement

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

Yield

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

Know Your Customer (KYC)