Principal-Protected Note - PPN

What Does Principal-Protected Note - PPN Mean?
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.

Related Terms

Catastrophe Bond - CAT
Equity Linked Noted - ELN
Fixed-Income Security
Globally Floored Contract
Market Index Target-Term Security - MITTS
Note
Risk Averse
More Related Terms

Related Links

Principal-Protected Notes: Hedge Funds For Everyday Investors - PPNs guarantee to return at least 100% of the original investment and have the potential to return much more.
Principal-Protected Investments: Risks, Fees And Regulations - Discover if these instruments hit the right note for you.
Asset Allocation Within Fixed Income - An investor's fixed-income portfolio can easily beat the average bond fund. Learn how and why!
The Money Market - If your investments in the stock market are keeping you from sleeping at night, it's time to learn about the safer alternatives in the money market.
Determining Risk And The Risk Pyramid - Many investors do not understand how to determine the level of risk their individual portfolios should bear.

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