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Equities
Equity investments carry some risk; share prices may change quickly and go down as well as up and you may not get back the money that you originally invested. The equity markets are generally divided into two, essentially large companies and small companies. The larger companies trade on the main market, whilst the smaller on ‘Small Cap’ markets, like the AIM and Plus Markets. Main Market listed stocks are deemed to be less risky and require firms to follow stricter listing rules and regulations. [READ MORE ON THE MAIN MARKET]
The Alternative Investment Market (AIM) is a market designed primarily for emerging or smaller companies. The rules of this market are less demanding than those of the official list of the London Stock Exchange and therefore companies quoted on AIM carry a greater risk than a company with full listing. Alternative Investment Market shares often have a large difference between the buying price and the selling price. If they did have to be sold immediately you may get much less than you originally paid for the shares. It is very important that you carefully think about whether these investments are right for you and whether or not you can afford them. If you have any reservations to what investment may be suitable for yourself you should seek out expert advice. [READ MORE ON THE AIM MARKET]
Contracts For Difference
Financing on trades must also be taken into account also and can marginally affect the end result. CFD’s are a leveraged product and can result in losses that exceed your initial deposit. Trading CFD’s may not be suitable for everyone, so please ensure that you fully understand the risks involved. For a more detailed description of the risks associated with CFD’s please refer to the following: [READ MORE ON CFD's].
It is important that you understand that the price and value of investments and their incomes fluctuate. You may get back less than the amount you invested, possibly losing the total investment. Trading derivatives may require you to pay more at a later date. Changes in exchange rates may also cause your investment to go up or down in value. If in doubt please seek further advice.
Past performance is not necessarily a guide to future performance.
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