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Principal-Protected Note |
Also found in: Wikipedia | 0.01 sec. |
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Principal-Protected Note A security in which the original investment is put at no or very little risk. An example is a bond, in which the bondholder is guaranteed (short of default) to receive at least the amount he/she originally invested. The main risk to the bondholder is that the bond issuer will not pay coupons (or interest) on time. Principle-protected notes tend to have small, fixed returns. See also: Fixed-income security, principal. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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