MLP Spectrum Brochure - Flipbook - Page 5
Terms to know
Underlying asset (“Underlier”)
It is important to note…
Market-Linked Products are linked to the performance of
one or more underlying assets. Common underliers include
individual stocks, equity indices, or indices that provide asset
class diversification or exposure to popular themes.
Market-Linked Products are designed as
buy-and-hold investments, and there may
not be a liquid secondary market. The value
of the investment may be worth less than
the principal amount if sold prior to maturity.
Any return of principal, interest and gains
generated is subject to the credit risk of the
issuer. Dividends paid on the underlier are
not passed through to the Market-Linked
Product.
Participation rate
Participation rate is the degree to which your investment
participates in the potential growth or appreciation of the
underlier.1 A participation rate can be in excess of 100% (1.0x).
If you desire a higher participation rate, you must be willing
to accept a longer maturity or less downside protection.
Cap
A cap represents the highest level of growth, or maximum
return, you can receive from the investment, regardless of the
actual return of the underlier. Not all Market-Linked Products
have caps.
1 Any return of principal, as well as interest and gains generated are subject to the credit risk of the issuer and terms of the offering documents, which could include participation
rates, interim caps, and various risks. Dividends paid on the underlying asset are not passed through to the Market-Linked Product. There is no guarantee that a Market-Linked
Product will generate a positive return. Any applicable downside protection will be realized only at maturity, which may range up to 10 years. For certain Market-Linked Notes,
return at maturity could be less than the original amount invested. Regarding Market-Linked CDs, the Federal Deposit Insurance Corporation (FDIC) insures principal amounts
up to applicable limits in the event the issuer becomes insolvent.
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