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Reference.org
Equity-linked note
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<p>An equity-linked note (ELN) is a debt instrument, usually a <a href="/facts/Bond_(finance)/qlmpLj0k">bond</a> issued by a financial institution such as an investment bank or a subsidiary of a commercial bank. ELNs are liabilities of the issuer, but the final payout to the investor is based on an unrelated company's stock price, a stock index or a group of stocks or stock indices. The underlying stocks typically have large market capitalizations. Equity-linked notes are a type of <a href="/facts/Structured_product/bMraRl2c">structured product</a> and are often marketed to unsophisticated retail investors. </p><p>Equity-linked notes come in various forms, including the following. </p>