They are back – the accumulators. A financial product dubbed ‘I kill you later’.
Accumulators oblige investors to buy shares at a fixed price — usually a discount to prevailing market rates — at regular intervals. If the stock’s market price continues to gain, investors can pocket a hefty return; usually, the contracts include a kick-out feature that causes the contract to expire if shares rise above a certain level.
This product caused a lot of pain, especially in Asia. But we learn that UBS, HSBC, Citi and other are offering them again to wealthy investors.
Don’t touch it
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Accumulators oblige investors to buy shares at a fixed price — usually a discount to prevailing market rates — at regular intervals. If the stock’s market price continues to gain, investors can pocket a hefty return; usually, the contracts include a kick-out feature that causes the contract to expire if shares rise above a certain level.
This product caused a lot of pain, especially in Asia. But we learn that UBS, HSBC, Citi and other are offering them again to wealthy investors.
Don’t touch it
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