JP Morgan Chase Auto Callable Contingent Interest Notes Linked to Dish Network
The White Law Group is investigating potential claims involving Auto Callable Contingent Interest Notes Linked to the Least Performing of the Common Stock of The Walt Disney Company, the Class A Common Stock of DISH Network Corporation and the Common Stock of FedEx Corporation due September 20, 2024.
Dish Network Auto Callable Contingent Interest Notes – Complex Investment Product
According to the prospectus, payments on the notes are not linked to a basket composed of the Funds. Payments on the notes are linked to the performance of each of the securities individually. The payments on the Notes will depend on the individual performance of the Common Stock of The Walt Disney Company, the Class A Common Stock of DISH Network Corporation and the Common Stock of FedEx Corporation. These are considered the “Underlying”.
“Investors should be willing to accept the risk of losing some or all of their principal and the risk that no Contingent Interest Payment may be made with respect to some or all Review Dates. ? Investors should also be willing to forgo fixed interest and dividend payments, in exchange for the opportunity to receive Contingent Interest Payments.”
Understanding the Risks – What are Auto Callable Contingent Interest Notes?
Here’s an explanation of the key characteristics of these structured notes:
Auto callable contingent interest notes linked to the least performing common stock are a specific type of financial product that combines features of auto callable structured notes, contingent interest payments, and performance tied to the least performing common stock.
Auto callable means that these notes have a specific condition that, if met, allows the issuer to redeem the notes early before their scheduled maturity date. This feature provides the issuer with the right to call back the notes if certain criteria are satisfied. Early redemption can occur if, for example, the underlying asset reaches a certain predetermined level at any point before the maturity date.
Contingent interest notes provide investors with the opportunity to receive additional interest payments, contingent upon specific conditions being met. These conditions are typically linked to the performance of the underlying asset or index. If the criteria are satisfied, the investor may earn higher interest payments beyond the regular coupon rate.
The performance of these notes is tied to a specific common stock among a group of common stocks. The investor’s return is determined based on the performance of the least performing stock within that group over a specified period. If the chosen common stock performs poorly during the period, it can have adverse effects on the investor’s return.
Dish Network Auto Callable Contingent Interest Notes
Significant Risks to Consider
There are additional risks associated with investing in Dish Network Auto Callable Contingent Interest Notes:
The performance of the notes is directly linked to the least performing common stock within a group of stocks. If the chosen common stock performs poorly during the specified period, it can lead to a reduction or negative return on the notes. Market volatility and changes in the stock’s price can impact the overall performance of the notes.
These notes are typically issued by financial institutions, so investors face the credit risk of the issuer. If the issuer experiences financial difficulties or defaults, investors may face a loss of principal and interest payments. Further, the auto-call feature in these notes gives the issuer the option to redeem the notes early if certain conditions are met. If the notes are called early, investors may miss out on potential future interest payments or potential gains if the underlying common stock continues to appreciate.
The additional interest payments are contingent upon specific conditions being met, which are typically tied to the performance of the underlying common stock. If the conditions are not satisfied, investors may not receive the enhanced interest payments, and their returns could be lower than expected.
In addition, investing in a single common stock, even if it is the least performing among a group, exposes investors to stock-specific risk. Factors such as company performance, management decisions, industry trends, and external events can impact the stock’s value and, consequently, the performance of the notes.
Auto callable contingent interest notes may have limited liquidity in the secondary market. Selling the notes before maturity can be challenging, especially if there is low demand or restrictions on resale. These notes can be complex financial instruments with intricate terms and conditions. Understanding the features, risks, and potential outcomes can be challenging for investors. Proper due diligence and consultation with a financial professional are essential.
The White Law Group is investigating the liability that brokerage firms may have for recommending complex, often extremely high-risk, structured notes such as Dish Network Auto Callable Contingent Interest Notes.
Investors should carefully assess these risks, review the offering documents, and seek advice from a financial professional to determine if auto callable contingent interest notes linked to the least performing common stock align with their investment objectives and risk tolerance. It’s essential to have a clear understanding of the potential risks and rewards before making investment decisions.
Brokers often pitch structured products, as providing “downside protection” against losses to a related index while allowing modest upside gain potential. Of course, this is only true if the value of the index doesn’t fall below a predetermined price. If the price falls below that point, the losses in structured notes can still be huge.
These products typically pay a high fee to the financial advisors that sell them.
Brokerage firms have two main duties in recommending structured callable notes linked to equity investments or indexes. First, brokerage firms are required to perform adequate due diligence on any product they recommend. Second, brokerage firms are required to ensure that all recommendations made are suitable for their client in light of the client’s age, investment experience, net worth, income, and investment objectives.
If a brokerage firm fails to do either of these things, the firm can be held responsible in a FINRA arbitration claim.
Hiring a FINRA Attorney
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
With over 30 years of securities law experience, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses.
The firm reviews securities fraud cases throughout the country.
If you have suffered losses investing in Dish Network Auto Callable Contingent Interest Notes, the securities attorneys of The White Law Group may be able to help. For a free consultation, call the firm’s office at 888-637-5510.
For more information on The White Law Group, please visit our website at https://whitesecuritieslaw.com.
Tags: Dish Network, JP Morgan, securities attorneys, structured products Last modified: July 18, 2023