Structured Note

Search Dictionary

Definition of 'Structured Note'

A structured note is a type of investment product that is linked to an underlying asset, such as a stock, bond, or commodity. The return on the structured note is based on the performance of the underlying asset, but it may also be linked to other factors, such as interest rates or inflation.

Structured notes are often marketed as being more complex than traditional investments, but they can actually be quite simple. In many cases, they are simply a bundle of different investments that are packaged together and sold as a single product.

The main advantage of structured notes is that they can offer investors a higher return than traditional investments. However, they also carry a higher level of risk. This is because the return on a structured note is not guaranteed, and it can be affected by factors that are beyond the investor's control.

Structured notes are often used by investors who are looking for a way to diversify their portfolios or to gain exposure to certain asset classes. However, they should only be considered by investors who understand the risks involved and who are willing to accept the potential for losses.

Here are some of the key features of structured notes:

* They are linked to an underlying asset, such as a stock, bond, or commodity.
* The return on the structured note is based on the performance of the underlying asset.
* They may also be linked to other factors, such as interest rates or inflation.
* Structured notes are often marketed as being more complex than traditional investments, but they can actually be quite simple.
* They can offer investors a higher return than traditional investments.
* They also carry a higher level of risk.
* Structured notes are often used by investors who are looking for a way to diversify their portfolios or to gain exposure to certain asset classes.
* They should only be considered by investors who understand the risks involved and who are willing to accept the potential for losses.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.