Structured product

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Structured product

Structured products are investment vehicles based on a basket of underlying securities, such as derivatives, equities, debt issuance, commodities, indices, currencies, or any combination thereof. See: Debt instrument, Asset allocation decision, Structured finance

Structured Product

Any investment vehicle where the return is linked to the performance of an underlying index. For example, an exchange traded fund is a structured product that a company puts together using all the stocks that trade on a particular exchange. It compiles all the stocks and issues its own shares representing those stocks. These shares can be traded as if they were stocks. Many structured products are known by acronyms; for example, SPDRs are common structured product shares. See also: Rule 434.

Structured product.

Financial institutions create investment products, known generically as structured products, that trade on a stock exchange and link the return on an investor's principal to the performance of an underlying security, such as a stock or basket of stocks, or to a derivative, such as a stock index.

For example, the return on debt securities known as structured notes is determined by the performance of a stock index such as the Standard & Poor's 500 (S&P 500) rather than the market interest rate. The objective is to provide the potential for higher returns than are available through a conventional investment.

Each product has a distinctive name, often expressed as an acronym, and its terms and conditions vary somewhat from those offered by its competitors.

For example, in some cases the principal is protected and in others it isn't. But some features are characteristic of these complex investments -- their value always involves an underlying financial instrument and they require investors to commit a minimum investment amount for a specific term, such as three years.

References in periodicals archive ?
23, 2015 /PRNewswire/ -- Advisors Asset Management (AAM) announced today that it hired Robert Sowinski and Nicholas Scarpello as the company adds leadership to its structured products group and expands the capital markets team.
In light of the fact that the structured products were and are worth
The wealth and investment management division of Barclays has seen tremendous traction in its Asian structured products business, with volumes tripling from 2010.
The International Organization of Securities Commissions (IOSCO) today published the final report on Regulation of Retail Structured Products, which provides a toolkit outlining regulatory options that securities regulators may find useful to regulate retail structured products.
Structured products have become a huge financial market.
Misys, the number one independent financial services software provider, has come first in two categories of the annual Structured Products magazine technology rankings.
IBQ has launched structured products that will be linked to different asset classes and give investors the possibility of earning higher returns and capital protection at maturity.
20), which will meet wealth-management demand of local people via five major measures, including allowance for linkage of offshore structured products to Taiwanese stocks and allowance for linkage of domestic and offshore structured products to interest rates, exchange rates, and stock prices of mainland China.
There are many structured products on offer at any one time ranging from deposit-based plans with surety of return of capital through to a plethora of capital-at-risk solutions that can be an excellent complement to other investment solutions.
Global Banking News-May 30, 2012--Erste offering structured products in Turkey(C)2012 ENPublishing - http://www.
This is exactly what Structured Products aim to achieve.
London Investec Structured Products is pleased to announce its first hole-in-one winner at the Investec Structured Products Open 2011.

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