Principal-Protected Note - PPN

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."

BREAKING DOWN '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.