Enterprise and Structured deposit: Difference between pages

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imported>Doug Williamson
(Expand for the economics factor of production. Source: ACT ESA exam solution, April 2015, Q3.)
 
imported>Doug Williamson
(Create the page. Source: MoneyFacts http://moneyfacts.co.uk/guides/investments/what-is-a-structured-deposit-product/)
 
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#A commercial entity.
A retail investment product which offers:
#'Enterprise value' is the total value of a commercial business, whether funded by equity alone or by a combination of equity and debt. Also known as 'entity value'.
*Guaranteed return of the principal invested; and
#One of the 'factors of production' in economics, the others classically being labour, land and capital. In this context, 'enterprise' refers to taking the risks involved in organising other resources for the production of goods and services.
*Limited upside participation in a higher risk investment, often an equity index, for example the FTSE 100.
 
 
The provider hedges its risk by using part of in the investment proceeds to buy call options on the index (or other higher risk investment).




== See also ==
== See also ==
* [[Entity]]
* [[Call option]]
* [[Factors of production]]
* [[Deposit]]
* [[Labour]]
* [[Equity]]
* [[Land]]
* [[FTSE 100]]
* [[Capital]]
* [[Index]]
* [[Principal]]
* [[Retail]]
* [[Tracker fund]]

Revision as of 17:08, 24 August 2016

A retail investment product which offers:

  • Guaranteed return of the principal invested; and
  • Limited upside participation in a higher risk investment, often an equity index, for example the FTSE 100.


The provider hedges its risk by using part of in the investment proceeds to buy call options on the index (or other higher risk investment).


See also