Investments in small companies, derivative products and investments that are not readily realisable are considered high risk investments and are not suitable for all investors. High risk or speculative investments are not generally suitable for investors who are seeking to preserve capital or earn income through investment. Investments in high risk products should only be considered as suitable for high risk investors or as part of an overall balanced portfolio of investments.
Hence, you should carefully consider your financial situation and consult your financial advisors as to the suitability of your situation prior to making an investment or entering into a transaction.
All investments involve a degree of risk. The value of an investment may go down as well as up and you may not get back the money you invested. It should not be assumed that the value of investments always rises.
You should ensure that you have the financial capacity to bear the risk and only invest an amount you are willing to lose. Investors should build a diversified portfolio to spread risk.
Past performance is no guarantee of future results and higher risk investments carry the risk that some or all of the capital invested may be lost. The price of investments can change quickly and go down as well as up.
Higher risk or speculative investments have wider spreads on price and are more illiquid and in some circumstances it may be difficult to sell at any price.
Smaller company shares can be relatively illiquid, meaning they could be harder to trade, which makes them higher risk.
When committing funds to high risk investments, you may not be able to realise your investment within your overall time-scale, if at all (i.e. how long it will take before you can get your money back).