We all take risks. This is no surprise. Sometimes we win. Sometimes we lose.

We drive too fast. Sometimes we get where we’re going in “less time.” Sometimes we end up writing a check to the “police fund” via a speeding ticket.

We drink too much. Sometimes that “I’ll just have one more” glass of wine is awfully satisfying. Sometimes our livers crap out at age 44.

Investing is no different. History is littered with examples of yield-hungry investors venturing beyond their comfort (and oftentimes knowledge) zone to eek out a few extra basis points. Sometimes we earn extra income. Sometimes we suffer losses – big ones too.

This isn’t one of those faux sanctimonious moments where we exaggerate to make a point but yet another unfortunate example of investors buying things they didn’t understand, of an underestimation of risk, of product-pushers focusing on their bottom lines instead of the best interests of their customers and so forth.

Want to see what a “reverse convertible” is and what happens when things don’t go as planned? Read this article from BusinessWeek.