Shipkevich Bitcoin and ICO Attorney
Felix Shipkevich June 3, 2011

As part of an on-going effort to raise the public IQ on financial products, the SEC’s Office of Investor Education and Advocacy and FINRA jointly issued an investor alert called “Structured Notes with Principal Protection: Note the Terms of Your Investment” to educate potential investors of the risks associated with this particular. The retail market for structured notes has grown tremendously, and though they are often advertised as safe, they are by no means risk free.

A structured note generally combines a zero-coupon bond (a bond which pays no interest until maturity) with a related option or derivative. The asset, index, or benchmark underlying that derivative can vary widely, and the investor is liable the the change the value of that asset. However, in may instances their upside exposure (i.e. potential for profit) is capped.

Furthermore, though principal protected structured notes usually will bring the investor some return, the level of protection varies. Some guarantee is less than ten percent–and even a higher guarantee is only worth as much as the company making it.

Says the Director of the SEC’s Office of Investor Education and Advocacy: “Structured notes with principal protection contain risks that may surprise many investors and can have payout structures that are difficult to understand. This alert is a ‘must read’ for investors considering these products, especially those with the mistaken belief that these investments offer complete downside protection.”

Furthermore, the higher the potential yield, the more complex and potentially hazardous the investment. As FINRA Senior VP for Investor Education John Gannon notes, “The current low interest rate environment might make the potentially higher yields offered by structured notes with principal protection enticing to investors. But retail investors should realize that chasing a higher yield by investing in these products could mean winding up with an expensive, risky, complex and illiquid investment.”

Read more about this SEC / FINRA investor alert.

120 thoughts on “SEC and FINRA issue investor alert on structured notes with principal protection

  1. Hmm it seems like your blog ate my first comment (it was super long) so I guess I’ll
    just sum it up what I submitted and say, I’m thoroughly enjoying your blog.
    I as well am an aspiring blog writer but I’m still new to the whole thing.

    Do you have any recommendations for first-time blog writers?

    I’d certainly appreciate it.
    atletico madrid drakt

  2. I think that what you posted made a lot of sense. But, think on this, suppose you added a little content? I mean, I don’t want to tell you how to run your blog, but suppose you added a title that makes people desire more? I mean %BLOG_TITLE% is a little boring. You could look at Yahoo’s front page and watch how they create post titles to get people to open the links. You might add a related video or a related picture or two to grab readers interested about everything’ve written. Just my opinion, it would bring your website a little livelier.
    click here

  3. After I initially commented I appear to have clicked on the -Notify me
    when new comments are added- checkbox and from now on whenever a comment is
    added I get 4 emails with the same comment. Is there an easy method you can remove me
    from that service? Thank you!

  4. Yesterday, while I was at work, my cousin stole my iphone and tested to see if it
    can survive a thirty foot drop, just so she can be a youtube sensation. My iPad is
    now destroyed and she has 83 views. I know this is totally off topic but I
    had to share it with someone!

  5. I’ve been surfing on-line more than 3 hours as of late, yet I never discovered any fascinating article like yours.
    It is lovely price sufficient for me. In my opinion, if all webmasters and bloggers made good content as
    you did, the web will likely be much more helpful than ever before.

  6. Howdy! I realize this is kind of off-topic however I had to ask.
    Does managing a well-established website such as yours require a lot of work?
    I’m brand new to blogging but I do write in my diary everyday.
    I’d like to start a blog so I can share my own experience and
    feelings online. Please let me know if you have any recommendations or
    tips for brand new aspiring blog owners. Thankyou!

  7. This design is wicked! You most certainly know how to keep
    a reader entertained. Between your wit and your videos, I was almost moved to start my own blog (well,
    almost…HaHa!) Fantastic job. I really loved what you had
    to say, and more than that, how you presented it. Too cool!

  8. Hey excellent website! Does running a blog such as this take a massive amount work?
    I’ve absolutely no understanding of programming but I was hoping to start my own blog in the
    near future. Anyhow, should you have any suggestions or tips for
    new blog owners please share. I know this is off
    topic but I just wanted to ask. Thank you!

  9. With havin so much written content do you ever run into any
    problems of plagorism or copyright violation? My site has a lot of exclusive content I’ve either written myself or
    outsourced but it appears a lot of it is popping it up all over the web without my
    authorization. Do you know any ways to help
    protect against content from being ripped off?
    I’d definitely appreciate it.

  10. I absolutely love your blog and find nearly all of your post’s to be just what I’m looking for.

    Do you offer guest writers to write content for you personally?
    I wouldn’t mind creating a post or elaborating on a lot of the subjects you write regarding here.
    Again, awesome website!

  11. I’m really enjoying the design and layout of your site.
    It’s a very easy on the eyes which makes it much more
    enjoyable for me to come here and visit more often.
    Did you hire out a designer to create your theme?
    Outstanding work!

  12. Buy Kamagra In London Viagra Price Amoxicillin 500mg Walmart [url=http://sildenaf100mg.com]viagra[/url] Correct Viagra Dosage Cephalexin Canine Side Effects Cheap Viagra Pfizer

  13. Attractive section of content. I just stumbled upon your site and
    in accession capital to assert that I acquire actually enjoyed account your blog posts.

    Anyway I’ll be subscribing to your feeds and even I achievement you
    access consistently fast.

  14. I’m not sure why but this blog is loading incredibly slow
    for me. Is anyone else having this problem or is it a issue on my end?
    I’ll check back later on and see if the problem still exists.

  15. Hey I know this is off topic but I was wondering if you knew
    of any widgets I could add to my blog that automatically tweet my newest
    twitter updates. I’ve been looking for a plug-in like this for quite
    some time and was hoping maybe you would have some experience with something like this.
    Please let me know if you run into anything.
    I truly enjoy reading your blog and I look forward to your new updates.

  16. Hey just wanted to give you a quick heads up. The words in your post seem to be running off the screen in Opera.
    I’m not sure if this is a formatting issue or something to do with browser
    compatibility but I figured I’d post to let you know.
    The style and design look great though! Hope you get the issue resolved soon. Cheers

  17. Superb blog! Do you have any tips for aspiring writers?
    I’m planning to start my own website soon but I’m a little lost on everything.
    Would you advise starting with a free platform like WordPress
    or go for a paid option? There are so many options out there that I’m totally overwhelmed ..
    Any recommendations? Kudos!

  18. Can I just say what a relief to find someone who actually knows what they are talking about on the internet. You certainly know how to bring an issue to light and make it important. More and more people should read this and understand this side of your story. I can’t believe you aren’t more popular because you certainly have the gift.
    maglietta juventus

  19. I loved as much as you’ll receive carried out right here. The sketch is tasteful, your authored subject matter stylish. nonetheless, you command get bought an shakiness over that you wish be delivering the following. unwell unquestionably come more formerly again since exactly the same nearly a lot often inside case you shield this increase.
    maglie calcio

  20. I am extremely impressed with your writing skills and also with the
    layout on your blog. Is this a paid theme or did
    you customize it yourself? Either way keep up the nice quality
    writing, it is rare to see a great blog like this one these days.

  21. hello!,I really like your writing very so much!
    proportion we be in contact more about your post on AOL?
    I require an expert in this house to unravel my problem.
    May be that’s you! Taking a look forward to see you.

  22. Nice post. I was checking continuously this blog and I am impressed!

    Extremely useful information specifically the closing part 🙂 I care for such information much.
    I used to be seeking this certain information for a very lengthy time.
    Thank you and good luck.

  23. Undeniably consider that that you stated. Your favorite
    justification appeared to be on the net the simplest factor to
    remember of. I say to you, I definitely get irked
    at the same time as people consider issues that they just don’t know about.
    You managed to hit the nail upon the highest and outlined out
    the entire thing without having side-effects , folks could take a signal.

    Will likely be again to get more. Thanks

  24. Whats up very cool web site!! Man .. Beautiful ..

    Wonderful .. I will bookmark your website and
    take the feeds also? I’m satisfied to seek out a lot of useful information right
    here in the post, we’d like work out more strategies on this regard, thanks for sharing.
    . . . . .

  25. Hi there, just became alert to your blog through Google, and found that it is
    really informative. I am going to watch out for brussels.
    I will appreciate if you continue this in future.
    Lots of people will be benefited from your writing.
    Cheers!

  26. The other day, while I was at work, my cousin stole my iPad and tested to see if it can survive a 40 foot drop, just so she can be a youtube sensation. My iPad is now destroyed and she has 83 views.

    I know this is completely off topic but I had to share it with
    someone!

  27. I don’t know whether it’s just me or if everybody else encountering issues
    with your blog. It appears as if some of the text
    on your posts are running off the screen. Can somebody
    else please provide feedback and let me know if this is happening to them as well?
    This may be a issue with my browser because I’ve had this happen before.
    Cheers

  28. Hi there, just became aware of your blog through Google,
    and found that it’s truly informative. I am gonna watch out for brussels.
    I will appreciate if you continue this in future. A
    lot of people will be benefited from your writing.
    Cheers!

  29. I must thank you for the efforts you’ve put in writing this
    site. I am hoping to see the same high-grade content from you in the future as well.

    In fact, your creative writing abilities has inspired me to get my very own website
    now 😉

  30. Do you mind if I quote a few of your articles as long
    as I provide credit and sources back to your weblog?
    My blog site is in the exact same niche as yours and my
    visitors would certainly benefit from a lot of the information you present here.

    Please let me know if this alright with you. Thanks!

  31. Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my
    blog that automatically tweet my newest twitter updates.
    I’ve been looking for a plug-in like this for quite some time and
    was hoping maybe you would have some experience with something
    like this. Please let me know if you run into anything.
    I truly enjoy reading your blog and I look forward to your new updates.

  32. This design is wicked! You definitely know how to keep a reader amused.
    Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Wonderful
    job. I really loved what you had to say, and more than that, how you presented it.

    Too cool!

  33. Howdy, There’s no doubt that your site might be having internet browser
    compatibility issues. Whenever I take a look
    at your web site in Safari, it looks fine but when opening in I.E.,
    it has some overlapping issues. I simply wanted to give you a quick heads up!

    Apart from that, great blog!

  34. Thanks for your marvelous posting! I seriously enjoyed reading it, you can be a great author.I will always bookmark your blog and may
    come back someday. I want to encourage yourself to continue your
    great job, have a nice day!

  35. Having read this I thought it was rather enlightening. I appreciate you spending some time and effort to put this information together.
    I once again find myself personally spending a significant amount of time both reading and commenting.
    But so what, it was still worth it!

  36. excellent issues altogether, you simply received a logo new
    reader. What may you recommend in regards to your submit that you
    simply made a few days in the past? Any certain?

  37. Hey there just wanted to give you a quick heads up and let you know a few of the pictures aren’t loading properly.
    I’m not sure why but I think its a linking issue. I’ve tried it in two different internet browsers and both show the same results.

  38. I do not know if it’s just me or if perhaps everyone else experiencing issues with
    your website. It appears as if some of the text within your posts are running
    off the screen. Can somebody else please provide feedback and let me know if this is happening
    to them too? This could be a problem with my web browser because
    I’ve had this happen previously. Many thanks

  39. Its like you read my mind! You appear to know a lot about this, like you
    wrote the book in it or something. I think that you
    can do with some pics to drive the message home a bit, but instead of that, this is wonderful blog.

    An excellent read. I will definitely be back.

  40. Hi there would you mind letting me know which web host you’re working with?
    I’ve loaded your blog in 3 completely different web
    browsers and I must say this blog loads a lot quicker then most.
    Can you recommend a good web hosting provider at a honest price?
    Thanks a lot, I appreciate it!

  41. Admiring the hard work you put into your site and detailed information you offer.
    It’s awesome to come across a blog every once in a while that isn’t the same old rehashed
    information. Great read! I’ve bookmarked your site and I’m including
    your RSS feeds to my Google account.

  42. Hello just wanted to give you a quick heads up and let you know a few of the pictures aren’t loading correctly.
    I’m not sure why but I think its a linking issue. I’ve tried it in two different browsers and both show the same results.

  43. I as well as my guys happened to be analyzing the good secrets found on your web blog and then all of the sudden got a terrible suspicion I never thanked the blog owner for those secrets. These men had been for this reason excited to read through them and have very much been having fun with them. Appreciate your turning out to be really considerate as well as for finding some fine areas most people are really needing to be informed on. My honest apologies for not expressing appreciation to you sooner.

  44. I have to express some thanks to this writer for bailing me out of this particular instance. Just after surfing through the online world and obtaining techniques which were not beneficial, I believed my entire life was over. Being alive minus the solutions to the difficulties you’ve resolved as a result of this website is a serious case, as well as ones that might have adversely damaged my entire career if I hadn’t discovered the website. Your know-how and kindness in controlling all the things was very helpful. I am not sure what I would’ve done if I had not come upon such a solution like this. I can also now look ahead to my future. Thanks a lot so much for your specialized and amazing help. I will not hesitate to refer the website to any individual who needs to have care about this subject.

  45. I have to show my appreciation to the writer for bailing me out of this particular matter. Because of browsing throughout the search engines and seeing proposals which are not powerful, I assumed my life was over. Being alive without the strategies to the issues you have fixed through your entire short article is a serious case, as well as those that could have adversely affected my entire career if I hadn’t come across your website. Your primary training and kindness in taking care of all areas was precious. I am not sure what I would have done if I had not encountered such a step like this. It’s possible to at this time relish my future. Thanks so much for the high quality and sensible guide. I won’t be reluctant to endorse your blog to anybody who would need direction about this topic.

  46. My spouse and i have been very relieved Michael managed to complete his researching because of the ideas he had through your weblog. It’s not at all simplistic just to choose to be making a gift of techniques that some other people may have been trying to sell. And we recognize we have got you to give thanks to because of that. The main illustrations you made, the straightforward web site navigation, the friendships you can make it possible to promote – it’s got mostly extraordinary, and it is aiding our son in addition to us consider that this article is brilliant, which is certainly truly fundamental. Thanks for the whole lot!

  47. I would like to show some thanks to the writer for rescuing me from this type of dilemma. Just after surfing through the the net and finding techniques which are not productive, I was thinking my life was well over. Being alive without the solutions to the difficulties you have resolved through this guideline is a critical case, and the kind that would have negatively damaged my entire career if I hadn’t discovered your website. That mastery and kindness in touching the whole lot was invaluable. I don’t know what I would have done if I hadn’t come upon such a step like this. I am able to at this moment relish my future. Thank you so much for your professional and results-oriented guide. I will not hesitate to propose your web blog to anyone who requires support on this area.

  48. My spouse and i ended up being quite fortunate when Albert managed to finish up his researching with the precious recommendations he had from your very own blog. It is now and again perplexing just to be giving for free strategies which often many people may have been trying to sell. We already know we have got the writer to give thanks to because of that. The most important illustrations you made, the easy blog menu, the relationships you can aid to foster – it’s everything powerful, and it’s making our son and our family imagine that the matter is excellent, which is unbelievably serious. Thank you for all the pieces!

  49. I simply needed to thank you very much all over again. I am not sure the things I could possibly have accomplished without the type of tactics documented by you directly on my area of interest. It has been an absolute frightening issue for me personally, but being able to view a expert technique you solved that made me to weep over happiness. I am just thankful for your advice and trust you recognize what an amazing job you are putting in training most people through a site. I am certain you have never got to know any of us.

Leave a Reply