A capital guarantee product means that when an investor buys, or "enters", this specific derivative security he is guaranteed to get back at maturity a part or the totality of the money he invested on day one. Examples of capital guarantees include bond plus option, usually bond plus call, and constant proportion portfolio insurance.
Famous quotes containing the words capital and/or guarantee:
“The capital is become an overgrown monster; which like a dropsical head, will in time leave the body and extremities without nourishment and support.”
—Tobias Smollett (1721–1771)
“In universities and intellectual circles, academics can guarantee themselves popularity—or, which is just as satisfying, unpopularity—by being opinionated rather than by being learned.”
—A.N. (Andrew Norman)