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A short- to medium term debt instrument that offers a potentially higher return linked to the performance of a reference index or stock. An Accelerated Return Note (ARN) generally caps the total return it will provide, but typically does not provide any downside protection. This restricts its appeal to a narrow segment of the investor populace, viz.Investors who believe that the reference index or stock will only marginally appreciate the specified ARN matures, but will not decline sharply.
Read more: Accelerated Return Note (ARN) Definition | Investopedia http://www.investopedia.com/terms/a/accelerated-return-note-arn.asp#ixzz3rsp8c4S2
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