The content of this site has been approved by Fyshe Horton Finney Ltd, which is a member of the London Stock Exchange, and APCIMS, and is regulated by the Financial Services Authority. Chris Pook may have a holding in any of the investments mentioned on this site.
The information within this site is for general use and may not suit your own requirements circumstances. For specific advice contact chris pook. Shares in less liquid smaller companies may have a wide spread. If bought and sold immediately an investor will get back less than they invested. Large holdings in smaller companies may be difficult to buy or sell. Smaller companies receive less analyst coverage. This means that information about them may be unreliable.
Overseas investors in UK Sterling denominated stock, and UK Nationals investing in Overseas none Sterling denominated stock should realise that currency movements will have an impact on the value of their investments in local currency terms. This site is directed towards UK Nationals living in UKGB. None of our services are offered to persons resident in any country where the provision of those services would be in conflict with local regulation of law.
Users must satisfy themselves that they may lawfully access this site. The research on in this web site has been produced in accordance with the firm's policy on managing conflicts of interest. The full text of this policy is available from our Compliance department on request. The opinions and conclusions given are those of Fyshe Horton Finney Limited and are subject to change from time to time without notice.
Recommendations may or may not be suitable for individual s and they should contact FHF for best advice as to the suitability of each recommendation to their own circumstances before taking any action. No responsibility is taken for any losses, including, without limitation, any consequential loss which may be incurred by clients acting upon such recommendations.
The information in this site has been prepared with all reasonable care and is not knowingly misleading in whole or part. However, no responsibility is taken for factual errors or omissions.
You should remember that the value of investments referred to and the income derived from them can go down as well as up and that past performance is no guide to future performance. In order to ensure compliance with our obligations to clients and our regulator, telephone calls to our offices may be recorded.
IPO
Entry at this early stage provides the chance to take advantage of potentially considerable uplift in the value of a company's shares when they become quoted on either the AIM or OFEX market. IPO investments have the potential to yield high returns, however do involve a higher degree of risk. Private equity investments are illiquid investments which means it can be difficult to sell all or some of your shares and there is a higher risk of losing all or part of your investment when investing in private equity.
Investors should ensure they fully understand the risks involved before making an investment within the private equity arena. We suggest you seek independent financial advice before investing in private equity to ensure that private equity investments are suitable for you.
As Private Equity investments carry a higher degree of risk we only present private equity opportunities to clients who can demonstrate a suitable level of knowledge or understanding in this area of investing. You will need to confirm that you are either A previous investor in private companies or AIM stocks, A subscriber to a penny share newsletter, Previously given consent to us to receive such promotions, are an individual with previous involvement in the area of the private equity offered.
Derivatives Risk Warning
This notice is provided to you, as a private customer, in compliance with the rules of the FSA. Private customers are afforded greater protection under these rules than other customers are and you should ensure that your firm tells you what this will mean to you. This notice cannot disclose all the risk and other significant aspects of warrants and/or derivative products such as futures and options. You should not deal in these products unless you understand their nature and the extent of your exposure to risk. You should also be satisfied that the product is suitable for you in the light of your circumstances and financial position. Certain strategies, such as 'spread' position or a 'straddle', may be as risky as a simple 'long' or 'short' position.
Securitised Derivatives
These instruments may give you a time-limited right to acquire or sell one or more types of investment which is normally exercisable against someone other than the issuer of that investment. Or they may give you rights under a contract for differences which allow for speculation on fluctuations in the value of the property of any description or an index, such as the FTSE 100 index. In both cases, the investment or property may be referred to as the 'underlying instrument'. These instruments often involve a high degree of gearing or leverage, so that a relatively small movement in the price of the underlying investment results in a much larger movement, unfavourable or favourable, in the price of the instrument. The price of these instruments can therefore be volatile. These instruments have a limited life, and may (unless there is some form of guaranteed return to the amount you are investing in the product) expire worthless if the underlying instrument does not perform as expected. You should only buy this product if you are prepared to sustain a total loss of the money you have invested plus any commission or other transaction charges. You should consider carefully whether or not this product is suitable for you in the light of your circumstances and financial position, and if in any doubt please seek professional advice.
Options
There are many different types of options with different characteristics subject to the following conditions:
Buying options
Buying options involves less risk than selling options because, if the price of the underlying asset moves against you, you can simply allow the option to lapse. The maximum loss is limited to the premium, plus any commission or other transaction charges. However, if you buy a call option on a futures contract and you later exercise the option, you will acquire the future. This will expose you to the risks described under 'futures' and 'contingent liability investment transactions'.
Writing options
If you write an option, the risk involved is considerably greater than buying options. You may be liable for margin to maintain your position and a loss may be sustained well in excess of the premium received. By writing an option, you accept a legal obligation to purchase or sell the underlying asset if the option is exercised against you, however far the market price has moved away from the exercise price. If you already own the underlying asset which you have contracted to sell (when the options will be known as 'covered call options') the risk is reduced. If you do not own the underlying asset ('uncovered call options') the risk can be unlimited. Only experienced persons should contemplate writing uncovered options, and then only after securing full details of the applicable conditions and potential risk exposure.
Traditional options
Certain London Stock Exchange member firms under special exchange rules write a particular type of option called a 'traditional option'. These may involve greater risk than other options. Two-way prices are not usually quoted and there is no exchange market on which to close out an open position or to effect an equal and opposite transaction to reverse an open position. It may be difficult to assess its value or for the seller of such an option to manage his exposure to risk. Certain options markets operate on a margined basis, under which buyers do not pay the full premium on their option at the time they purchase it. In this situation you may subsequently be called upon to pay margin on the option up to the level of your premium. If you fail to do so as required, your position may be closed or liquidated in the same way as a futures position.
Contingent liability investment transactions
Contingent liability investment transactions, which are margined, require you to make a series of payments against the purchase price, instead of paying the whole purchase price immediately. If you trade in futures, contracts for differences or sell options, you may sustain a total loss of the margin you deposit with your firm to establish or maintain a position. If the market moves against you, you may be called upon to pay substantial additional margin at short notice to maintain the position. If you fail to do so within the time required, your position may be liquidated at a loss and you will be responsible for the resulting deficit. Even if a transaction is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when you entered the contract. Save as specifically provided by the FSA, you firm may only carry out margined or contingent liability transactions with or for you if they are traded on or under the rules of a recognised or designated investment exchange. Contingent liability investment transactions which are not so traded may expose you to substantially greater risks.
Limited liability transactions
Before entering into a limited liability transaction, you should obtain from your firm or the firm with whom you are dealing a formal written statement confirming that the extent of your loss liability on each transaction will be limited to an amount agreed by you before you enter into the transaction. The amount you can lose in limited liability transactions will be less than in other margined transactions, which have no predetermined loss limit. Nevertheless, even though the extent of loss will be subject to the agreed limit, you may sustain the loss in a relatively short time. Your loss may be limited, but the risk of sustaining a total loss to the amount agreed is substantial.
|
