Further, assume an original investment of 1,000 and an 80 participation rate.Actual investment performance may differ.Structured (strktd) adj.

Scenario 1: The index rises, assume return is tied to the performance of the S P 500 Index.Assuming it was 100, then regardless of how far the index fell, the customer would receive a full return (i.e., 100) of his or her initial invested principal at the end of the term.So in this scenario, the customer would receive the amount of his or her original investment principal, plus the 350 cap index return amount, for a total of 1,350.

The customer would not receive any additional returns under the participation rate; instead he or she would be paid according to the principal return at maturity percentage offered by the structured product.Structured is an adjective that comes from the noun structure, which is something that's been built or put together usually, we think of a building being a structure.