Stock Upside Note Security (SUNS)

An annual reset or cliquet-type note with the annual coupon linked to the annual appreciation percentage of a designated instrument or index less a fixed percentage to pay for the option component of the return. The index is reset each year relative to the year-end level making it possible to achieve a greater return than the cumulative return of the underlying instrument or index. 100% of principal is returned at maturity. See also Cliquet Option (2) (diagram).

Glossary * S