Structured Products
Participation Rate
Definition
What is Participation Rate?
The percentage of an underlying assetThe asset, rate, index, or reference on which a derivative's value is based.'s gain credited to a structured productAn investment combining debt and derivatives to create a defined payoff..
Example in practice
How This Looks in Practice
A 70% participation rate gives a 7% return when the index gains 10%.
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Related Terms
Structured Products
Structured Product
An investment combining debt and derivatives to create a defined payoff.
Structured ProductsPrincipal-Protected Note
A structured debt instrument designed to return some or all principal at maturity, subject to issuer credit and terms.
Structured ProductsCapital-at-Risk Note
A structured note whose principal may be reduced if specified market conditions occur.
Index InvestingIndex
A statistical measure tracking the performance of a defined group of securities or assets.