In short, a structured product is a type of security derived from or based on one or more other securities. The defining feature of a structured product, however, is that its return is based on the performance of the underlying asset.
Structured products offer a great deal of customization that allows brokers to tailor the risk profile to each individual investor. At the same time, however, they are complicated securities with a level of risk that make them inappropriate for many investors. This complexity makes it more important than ever to make sure you have the best investment lawyer if you lose money on one of these products.