Principal-Protected Note - PPN

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DEFINITION of 'Principal-Protected Note - PPN'

A fixed-income security that guarantees a minimum return equal to the investor's initial investment (the principal amount).

Also known as "principal-protected products" and "principal-protected securities."

INVESTOPEDIA EXPLAINS 'Principal-Protected Note - PPN'

These investments are tailored for risk averse investors wishing to protect their investments while participating in gains from favorable market movements.

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