These securities are created from or based on a single security, a “basket” of securities, an index, or a debt obligation of a foreign currency. Structured products vary across a wide array of possibilities. However, they are extremely complex, and even if boilerplate disclosure is provided in a prospectus, the disclosures can be difficult to understand. In recent years, some of these products have been marketed in misleading fashion, promising “principal protection” with returns guaranteed when in fact the principal was not protected but was tied to the credit worthiness of the issuing institution.

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