What are subscription products?

cashbackproblems

Hi

If someone said they were investing in Private Equity, Hedge Fund and Structured Products subscriptions what would this mean?

Cant find anything online

Thanks

grey_gym_sock

i don't know what 'subscription products' would be. might they have said they were making subscriptions into structured products? structured products are a kind of investment, as are private equity and hedge funds.

cashbackproblems

grey_gym_sock wrote: »

i don't know what 'subscription products' would be. might they have said they were making subscriptions into structured products? structured products are a kind of investment, as are private equity and hedge funds.

Thanks i think you must be right, i know wealth managers now offer packaged structured products etc which reinvests your interest/coupons from a bond into high risk derivatives so it must just mean buying into these.

sabretoothtigger

Not all derivatives are high risk, they are ideally used to prevent extreme risk.
Insurance on your car is a derivative taken against absolute losses. Expecting to turn a profit would be the idea that is foolish not retail appropriate yet some do invest on insurance risks and as such it is risky
http://en.wikipedia.org/wiki/Lloyd's_of_London#1988.E2.80.9396

jimjames

Subscription shares give you the right to buy the underlying share at a fixed price so can magnify gains or losses. Would that be what they are taking about?