[quote=Nachoman]They pay 8-10% per year for a 6 month period. Although the principle isn’t guaranteed, seems to be a better return than a normal CD. This offering period is for AAPL.[/quote]
My limited understanding of them puts it at the same risk as owning a stock that pays dividends…
If the underlying security (typically a stock) goes down in value during the period – you don’t get your principal back, you get shares of the stock (worth less than the initial investment). If the stock went up, you don’t get the gain, you get your principal back.
This is quite different than a cd.
I don’t see the advantage over owning the stock directly… You still have risk if the stock goes down.
