IONs: In a Nutshell
If held to maturity, IONs give investors an opportunity to participate
in a multiple of any appreciation of an underlying index. However,
the amount of participation will be limited by a predetermined
IONs are not principal protected securities; therefore, 100%
of principal will be at risk. This means that investors may lose
some or all of their initial investment in IONs if the underlying
index declines in value.
IONs are short dated investments that do not provide for regular
coupon payments. Instead, IONs provide for a one-time payment
at maturity that will be based upon the capped performance of
the underlying index.
Because an investor's principal is at risk, IONs should
only be considered by the more aggressive investor.
The Underlying Index
IONs provide investors with exposure to an underlying index.
The underlying index can provide investors with exposure across
various company sizes, stock exchanges, currencies, geographic
regions and industry sectors, including:
- Publicly traded companies in a specific region
- Industry leading companies
- Specific industries
IONs may be linked to some of the world's most popular indices,
including, but not limited to, the S&P 500 Index®, the
Dow Jones Global Titans IndexSM, the NASDAQ Biotechnology Index®,
and other global indices.