Qualified advisers answering your
Financial Questions
call 0800 092 1245

Is the stock market as risky as people suggest?

The last 24 months have seen a rollercoaster ride in the UK, and worldwide, stock market with billions upon billions of pounds lost but many people making significant profits in the short term. While there is no doubt there are short, medium and long-term risks to investing in any stock market in the world, is it sensible to avoid stock market investment?

The truth is that any investment vehicle or investment tool you can think of will ultimately at some point be impacted by the UK stock market. On a business level, funding to expand small, medium and large businesses is provided by the stock market, and on a consumer level, funding for UK banks and UK financial institutions comes in via the money markets. Pension funds and other "everyday" financial instruments also have exposure to the stock market and even the property sector, which many believe is central to the UK economy, receives the vast majority of its funding from both the stock market and money markets.

While there is no doubt that direct investment into any stock market does involve a risk for the investor, the truth is that without a stock market the UK economy would grind to a halt and there would be little or no funds available for expansion in the business arena.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details