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1. Investments
All investments are speculative and will fluctuate in value. It should not be assumed that the value of investments always rise. Past performance will not necessarily be repeated and is no guarantee of future success. Investors should carefully consider their own personal financial circumstances before dealing in the stock market, and should seek independent advice from their investment adviser if in any doubt.
2. Penny Shares
You run an extra risk of losing money when including "penny shares". There is a big difference between the buying price and the selling price of these shares. If you have to sell them immediately, you may get back much less than you paid for them. You may have difficulty in selling these shares. It may be difficult for you to obtain reliable information about the value of this investment or the extent of the risks to which it is exposed. The price may change quickly and it may go down as well as up. Past performance is no guarantee of future success and clients should carefully consider their own personal financial circumstances before dealing in the stock market. Clients with fixed incomes and people approaching retirement age should carefully consider the above. This investment may not be suitable for all recipients, and if you have any doubts you should seek advice from your broker about this firm.
3. Alternative Investment Market (AIM)
This 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 carry a greater risk than a company with a full listing.
4. OFEX
OFEX is authorised as a Prescribed Market under the FSMA 2000. It is not a recognised or designated investment exchange. Companies trading on OFEX are not listed and are not subject to the same level of regulation as those companies trading on the AIM or those companies with a full listing on the London Stock Exchange and there is a much higher level of risk attached to companies trading on OFEX. It may be difficult to obtain reliable information about the current trading position of companies on OFEX and if there is only one market-maker quoting prices, there may be occasion where you may have difficulty in buying or selling shares at a reasonable price or at all. Similarly the difference between the buying and selling prices can be wide and prices being quoted on OFEX may only be indicative prices and not firm two-way prices. Additionally, there may have been little or no trading in the stock since its issue. Consequently, if you have to sell your shares immediately you may get back much less than you paid for them.