The risk of investing in stocks and shares is that the company may go bankrupt. If this happens, the investor will lose all of their money. Another risk is that a company’s share price may decrease, but not to the point of bankruptcy. This means that an investor does not lose all their money, but they do not get as much of a return as they would if the share price had increased.
Investing in stocks and shares can be risky because many factors can affect a company’s share price. These factors include supply and demand, economic growth rates, interest rates, inflation, and political uncertainty.
Let’s look at the UK after the Brexit vote in July 2016. : The UK economy produced a 0.3% decrease in GDP growth in the second quarter of 2016, compared to an annualized increase of 3.2%. This was due to the Brexit vote, which had caused a significant drop in the value of the sterling, uncertainty across financial markets, and higher costs.
In October 2016, after Theresa May won her Conservative Party membership vote for Prime Minister, Bank of England Governor Mark Carney stated there was no economic case for increasing interest rates shortly .
Theresa May won her Conservative Party membership vote for Prime Minister, Bank of England Governor Mark Carney stated there is no economic case for increasing interest rates shortly Brexit: Theresa May wins Conservative Party leadership ballotTheresa May has been elected as leader of the Conservative Party, beating former London Mayor Boris Johnson with 51.9% of the vote.