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iPath Global Carbon ETN: Investigation

iPath Global Carbon ETNThe securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments in iPath Global Carbon exchange-traded notes (NYSE: GRN).

The iPath Global Carbon ETN is an exchange-traded note linked to the Barclays Capital Global Carbon Total Index Return. This index’s underlying assets, according to Business Insider, are carbon allowances, which are credits that permit companies to produce pre-determined levels of carbon from factories and power states.

The iPath Global Carbon ETN poses a number of risk factors for investors, according to its prospectus. Since ETNs track the performance of its underlying assets, they are subject to the risks of the underlying market, as well as the issuing bank. They are held to a certain maturity date or exercise date or period, and there is no guarantee you will make a return, or even recover your principal. When the ETNs are issued, the securities will not have an established trading market, and there is no assurance that such a market will be established or maintained, nor that such a market will provide liquidity if it arises. Additionally, according to the prospectus, “The estimated value of your securities on the initial valuation date is expected to be lower, and may be significantly lower, than the initial issue price of your securities.” The estimated value is based on certain internal models within the issuing bank, which may be inaccurate or differ from those used to other financial institutions. The estimated value cannot be used as a predictor of prices you may receive for your securities in potential secondary markets. In broad terms, the overall risk with the iPath Global Carbon ETN, which is true of any ETN, is unpredictability. The ETN is subject to market volatility and comes with no guarantees.

According to Bloomberg, it has declined in value by over 38% in the last year. Business Insider suspects that this is due to the complexity inherent in valuing carbon credits: numerous factors are at play in determination of supply and demand for carbon credit allowances, including global credits markets and the performance of utilities companies. Investors should take steps to fully understand the risks associated with the iPath Global Carbon ETN, as with any investment, to ensure the product is suitable for their needs and investment profile. If your broker or investment adviser fails to adequately explain the risks associated with the iPath Global Carbon ETN, he or she may be subject to disciplinary action.

If you have lost money investing in the iPath Global Carbon ETN (NYSE: GRN), you may be able to recover your losses. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on a contingency basis: Fitapelli Kurta only gets paid if and when you collect funds.  Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.