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