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Glossary

Autocall Premium
A type of payment made on some Autocallable Structured Investments. An Autocall Premium is a predetermined payment amount, as calculated and described in the Prospectus or offering document, that is paid to investors if the product is automatically redeemed (“autocalled”) prior to the scheduled Maturity Date.
Autocallable
A type of Callable product, which will automatically be redeemed (“autocalled”) prior to the scheduled Maturity Date if the Underlier satisfies a specified Contingency(ies), often that the Underlier is at or above a specified level on a predetermined date or dates. If autocalled, the investor receives Principal invested plus any potential Coupon or Autocall Premium earned on the given Observation Date.
Barrier
A type of Buffer that absorbs a fixed percentage of the Underlier’s decline; however, if the Underlier declines beyond a specified level, the protection disappears and losses are one-for-one from the Underlier’s Initial Level. Barriers may be observed continuously, daily, or at maturity. Barriers are generally considered the riskiest type of Buffer associated with Structured Investments.
Buffer
A form of protection of an investor’s Principal. The Buffer absorbs a fixed percentage of the Underlier’s decline, after which the investor participates in the decline in the Underlier. Hard Buffers, Geared Buffers, Deleveraged Buffers, and Barriers are all different types of Buffers.
Call Observation Date
The date or dates on which a Structured Investment may be redeemed prior to maturity and an investor’s Principal returned. On each Call Observation Date, Structured Investments can either be called at the Issuer’s discretion or autocalled if the Underlier satisfies a specified Contingency(ies), depending on the terms of the Structured Investment.
Callable
The ability for a Structured Investment to be redeemed prior to maturity. Structured Investments can be callable at the Issuer’s discretion or autocalled if the Underlier satisfies a specified Contingency(ies) on a predetermined date or dates, depending on the terms of the Structured Investment.
Contingency
A condition that must be met in order for an event to happen or a payment to be paid.
Contingent Coupon
A type of Coupon offered on some Income Products. The investor receives a Coupon if a specified Contingency(ies) is satisfied, typically that the Underlier is at or above a specified level on a predetermined date or dates.
Credit Risk
The risk that the Issuer will default and not meet its principal and interest obligations. This factor must be considered when evaluating Structured Investments relative to traditional equity investments. Credit Risk can also be known as default risk.
Cusip
A unique product identifier that is assigned to each Structured Investment and other securities.
Determination Date
The date on which the Final Level of the Underlier is determined and the Settlement Amount of the investment is calculated.

Estimated Initial Value

A calculated level provided by the Issuer that approximates the value of your Structured Investment on Trade Date. The Estimated Initial Value on Trade Date may not reflect the value that appears on a investor’s statement, but is typically disclosed in the final Prospectus or offering document. This term may also be referred to as Estimated Value.

Expiration
The final possible event observed for a given Structured Investment.
Final Level
The value of the Underlier, set on the Determination Date, against which the Initial Level is measured to determine the payout of the Structured Investment.
Fixed Coupon
A type of Coupon offered on some Income Products. The investor receives a fixed payment on a periodic basis throughout the life of the trade, regardless of the performance of the Underlier.
Floor
A type of downside protection of an investor’s Principal, where the investor takes losses that are one-to-one with the market for a fixed percentage of losses in the Underlier. After the fixed percentage, the Floor absorbs additional losses. A Floor provides a maximum fixed percentage of potential loss exposure to the Underlier.

Hard Buffer

A type of Buffer that absorbs a fixed percentage of the Underlier’s loss and, after that, losses are one-to-one with the market. Hard Buffers are generally considered more conservative than Geared Buffers and Barriers.

Income Product
An investment designed for an investor looking to earn income/yield on his/her assets, generally characterized by the potential to earn Coupon payments during the life of the investment.
Initial Level
The value of the Underlier, set on the Trade Date, against which the Final Level is measured to determine the payout of the Structured Investment.

Investment Horizon

The time period over which an investor expects his/her investment views may be realized.

Issuer

A legal entity responsible for the issuance of the Structured Investment, and to which holders of the Structured Investment are exposed to Credit Risk.

Issuer Callable

A type of Callable product, where, on any Call Observation Date, the Issuer may choose, in its discretion, to redeem the investment prior to scheduled Maturity Date. If called by the Issuer, the investor receives Principal invested plus any Coupon earned on the given Observation Date.

Maturity Date

Maturity Date refers to the date at which the Structured Investment will be redeemed subject to the possibility of it being called or automatically redeemed prior to such date.

Non-Call Period
The period following Trade Date during which Callable Structured Investments are not eligible to be called for redemption.
Notional Amount
The nominal or face amount that the investor originally purchased on Trade Date and used to calculate payments made on that investment. This term may also be referred to as Principal Amount.
Observation Date
A date on which the level of the Underlier is measured in order to calculate payments made on the investment for a given event.
Payment Date
The date on which payment is due for a given event.
Performance Coupon
A type of Coupon offered on some Income Products. The Coupon amount an investor receives is determined using the performance of the Underlier or a basket of Underliers, as calculated and described in the Prospectus or offering document.
Principal Amount / Principal
The nominal or face amount that is originally invested on Trade Date and used to calculate payments made on that investment. Principal Amount can also be known as the Notional Amount.
Principal Contingency
A form of additional protection of an investor’s Principal available for certain structured notes with multiple reference assets as the underlier. If any one of the reference assets of the underlier are at or above the Principal Contingency level at maturity, the investor will receive full principal back.
Prospectus
The formal legal document, generally filed with the SEC, that provides details about the Structured Investment, including material information relating to the Issuer and the terms and risks of the investment.
Proximity to Coupon Contingency
The difference between the Underlier’s Current Level and the Coupon Contingency Level. The Coupon Contingency must be met in order for a coupon to be paid on the Structured Investment. Generally, if the Underlier’s Current Level is at or above the Coupon Contingency Level on a given Observation Date, a coupon would be paid on the Structured Investment with respect to such Observation Date.
Proximity to Current Call Level
The difference between the Underlier’s Current Level and the Call Contingency Level. The Call Contingency must be met in order for the Structured Investment to be automatically redeemed. Generally, if the Underlier’s Current Level is at or abovethe Current Call Level on a given Observation Date, the investment would be automatically called on such Observation Date.
Proximity to Digital Contingency
The difference between the Underlier’s Current Level and the Digital Contingency Level. The Digital Contingency must be met in order for the investor to receive the Digital Payment at maturity. Generally, if the Underlier’s Current Level is at or above the Digital Contingency Level at maturity, the investor will receive a Digital Payment.
Proximity to Protection Level
The difference between the Underlier’s Current Level and the level at which protection is no longer provided. Generally, if the Underlier’s Current Level is below the Protection Level on a given Observation Date, the holder of the Note/CD would be exposed to losses on such Observation Date.
Risk Tolerance
The degree of Volatility in investment returns that an individual is willing to withstand. An individual should have a realistic understanding of his or her ability and willingness to bear large swings and losses in the value of his or her investments.

Sales Concession

The percentage of the Notional Amount invested that will be paid as a commission on the sale of the Structured Investment. Sales Concessions are published in the Prospectus or offering document and publicly available for investors to view.

Secondary Market
The venue in which an investor may be able to sell a Structured Investment prior to the Maturity Date. Structured Investments are buy and hold investments, which means that they are meant to be held to maturity and there is no guaranteed Secondary Market. Historically, Issuers have generally bought back Structured Investments; however, Issuers are under no legal obligation to do so.
Settlement Amount
The amount of money, expressed as dollars of the Notional Amount invested, that the investor receives for a Structured Investment if held to the Maturity Date. This amount is calculated on the Determination Date and paid to the investor on the Maturity Date.
Settlement Date
The date by which the investor must pay for the Structured Investment in exchange for delivery by the Issuer.
Structured Investment
A type of investment, where returns are linked to the performance of a reference asset, or the Underlier, which is typically an index, ETF, or stock.
Tenor
A finite time period at the end of which the Structured Investment will be redeemed, subject to the possibility of it being called prior to Maturity Date. Only Callable or Autocallable Structured Investments can be called prior to Maturity Date. This term may also be referred to as maturity.
Total Coupons Earned
Cumulative coupons that have been earned since Trade Date.
Trade Date
The date that the investor’s obligation to pay and Issuer’s obligation to deliver arises. Typically, a Structured Investment is priced on this date and the Initial Level is determined.
Underlier
All Structured Investments provide a return that are based on or linked to the performance of a reference asset, or the Underlier. which is typically an index, ETF, or stock.
Underlier Return
The difference between the Underlier’s Current Level and Initial Level, divided by the Underlier’s Initial Level.
Volatility
A statistical measure of the dispersion of returns. Historical volatility is derived from time series of past market prices while implied volatility is forward-looking. Volatility may be viewed as one proxy for measuring risk, in that higher volatility assets are often perceived as riskier investments than assets with lower volatility.