Risks Associated with Investment in Shares

Shares can be a sound long-term investment but of course there are always risks to be considered as with any type of investment. These include the following:

  1. Volatility

    Share values can be volatile and can fall dramatically in price, even to zero.

  2. Credit Risk

    Owners of ordinary shares are generally the last in the line of creditors if a company fails and there may be no chance of getting any money back. 

  3. Unexpected Events

    Unexpected events which are outside of your control, such as company specific bad news, a change in government policy or natural or man-made disaster can seriously affect share prices.

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