1. What is a snowball income voucher structure product?
First of all, we need to know what this snowball income voucher structure product is like. In fact, this product has eight elements, and the following small series lists four points. 1 is the knock-out observation day, that is, one trading day of each month is dominated by announcements, and the second is the knock-in observation day, from the observation day to the end of the observation day. The third is the pad, which is the agreed maximum decline. The fourth is the knock-out event, that is, if the closing price of the target is greater than or equal to the knock-out price on any observation day of knock-out interest, the knock-out event will occur and the product will be terminated early. Therefore, the core investment point of snowball structure income certificate is that I don't know whether the stock can go up, but I feel that the stock will not fall too much and get some benefits from it.
Second, what is the underlying transaction structure?
In fact, the underlying transaction structure is also well understood, that is, there are two kinds of income vouchers of brokers, one is the principal guarantee type and the other is the secondary principal guarantee type. If it is a principal-guaranteed type, then it is linked to stocks, indexes and fund commodities. If it is non-guaranteed, it is linked to index enhancement, safety and initiative, which is snowballing. The income voucher of snowball structure refers to the product of non-principal guarantee safety mat. Therefore, the underlying transaction structure of this snowball structure income voucher is also a relatively optimized transaction model.
Third, summary.
In fact, income voucher is essentially a creditor's right voucher between investors and brokers, which defines creditor's rights and debts. For example, there is a creditor-debtor relationship between securities companies and investors, investors will subscribe for income certificates, and bond companies will issue and manage income certificates. The two complement each other, and no one can do without each other. Only by working closely together can they gain benefits.