Example of PPN: Understanding Principal Protected Notes
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5 min read
According to the Autorité des marchés financiers, managers of Principal Protected Notes (PPNs) can invest a portion of an investor's capital in fixed-income securities to guarantee a return of the initial principal. A key example of a PPN is a note linked to a major stock index, providing a minimum return of the original investment at maturity while offering potential gains based on the index's performance.
