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

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).

Income statement

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

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.

Leverage

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

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.

Base rate

What's the base rate?

ESG investing

ESG is a hot topic right now for investors. Understand what ESG investing is all about and how you can use it to diversify your portfolio.

Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.

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Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).