ELI5: Explain Like I'm 5

Structured product

Structured products are like special types of financial products that are meant to give investors a way to invest in different types of financial markets. The way they work is this: instead of just buying a single stock or bond, structured products let investors buy a package of different types of financial investments that have been specially designed by financial experts.

For example, let's say an investor wants to invest in the stock market, but they're worried that the stock market might go down in value. They might choose to invest in a structured product that includes both a stock market investment and some kind of safety net, like a guaranteed minimum return, or protection against losses beyond a certain point.

Structured products can be customized to suit each individual investor, so they can be very complex. That's why it's important for investors to carefully read the terms and conditions of a structured product before investing, and to work with a financial advisor who can help explain any complicated parts.