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Innovation process of the financial markets resulted in introduction of new products to the retail investors in response to these investors' different needs. First of all, derivatives were offered by the financial institutions to the retail investors as an alternative to such conventional spot products as stocks, bonds and commodities. Due to the fact that the retail investors weren't satisfied and started to seek alternative instruments again, issuers started to introduce new instruments. These instruments are called structured products and formed by the combination of several products that already exist in financial markets. These structured products have new- generation innovative, tailor made structures consisting of more than a single product in order to cater the special needs of the retail investors. This study will thoroughly examine the detailed use of these innovative products in the financial markets; especially in Turkish context. In addition to looking over their usage, their main characteristics and features will be analyzed for different types of products from different markets. Throughout the study, structured products will be analyzed.
