What Is an Equity Linked Note?
Equity Linked Note (ELN) has always been a thing for institutional investors, and it has only been gradually accepted by small citizens in recent years. The main reason for the popularity of this type of bills is that they pay high interest rates, which are often higher than those on red books or fixed deposits. As the name implies, these notes are linked to one or more stocks, and the blue-chip stocks that are currently on the market are mainly linked.
Stock-linked notes
Right!
- Equity Linked Note (ELN) has always been
- Equity Linked Note (ELN) has always been
- This type of bill is played when the investor is buying a 'bullish' note, and the issuer will set up a stock-linked note
- Therefore, investors must be careful that 'notes' are not necessarily bonds. Note products are entirely investment vehicles related to stocks. Don't be blindly attracted by their high interest rates. There is a certain risk in buying stock-linked notes. When the stock price trend runs counter to investors' expectations, be prepared to 'receive'. In other words, investors buy 'bullish' notes, the stock price of the underlying stock continues to fall, and even loses all funds when it expires. At present, most of the available stocks are 'bullish'. If the public is bearish on the future trend of the stock market, they can choose 'bearish' notes.