Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To think if you invest in shares in a company you take a risk

3 replies

Ijustwantaquietlife · 14/09/2017 11:24

www.google.co.uk/amp/news.sky.com/story/amp/northern-rock-shareholders-must-be-compensated-11033737

These people are acting as if they deposited money with a bank. No they didn't they bought shares and obviously they are much higher risk!

OP posts:
TeenTimesTwo · 14/09/2017 11:28

Yes and No.

Isn't the issue with Northern Rock that there was a forced takeover by the government or something? That is a bit different from a company just not doing very well?

Just like house prices can go down as well as up, but if the Government decided to build a highway through your house you'd expect to be compensated.

Hereward1332 · 14/09/2017 11:44

YANBU. I cannot think why the government should pick up the tab; shareholders were attracted by the profits from its investment activities which made for an increasing share price. These were risky as the bank did not have a large enough capital base.

They could have invested in safer stocks or kept money in cash. The government did not force them under, just withdraw financial support. The bank was already failing - it simply did not have enough cash to meet its capital requirements and could not borrow.

EamonnWright · 14/09/2017 11:46

It's little different to putting money on a horse.

New posts on this thread. Refresh page
Swipe left for the next trending thread