Bull CD

A certificate of deposit (CD), linked to a stock index, with an interest rate that increases if the associated index increases in value.

Bovine Securities (BS) wanted to appeal to a more conservative client base. Knowing that risk averse people are more likely to invest in fixed income securities than equities, it decided to issue a Bull CD.

This BS CD was certain to appeal to investors who wanted the thrill of profiting from the stock market while taking on much less risk.