Risk Warning
Before participating in any investment in securities or other financial instruments (“Offerings”) via CMC Markets UK plc trading as CMC CapX (“CMC”, "we", "us" and "our", as applicable), it is important that you read and understand our Risk Warnings, which are set out below. Any investment in an Offering is subject to CMC’s legal documents (as applicable) which can be found here. You are encouraged to read this Risk Warning, which is general in nature and should not be taken as an exhaustive list of the risk factors to which you may be exposed. You should consider any additional risk factors as disclosed by the relevant issuer undertaking the Offering.
- Before you decide to invest in any Offering, you should consider all factors in light of your individual circumstances. There are inherent risks associated with investing in Offerings, including but not limited to a loss of capital, lack of liquidity, dilution risk, rarity of dividends and risks relating to general economic conditions. If you have any doubt about the suitability of an investment opportunity, or you require financial advice, you should seek a personal recommendation from a suitably qualified professional.
- As with all capital market investments, there are risks associated with investing in Offerings. The value of investments can go up as well as down and you may receive back less than your original investment. Securities can experience extreme price and volume fluctuations. There is no guarantee that you will receive any return on your investment and your capital is at risk.
- Investing all your money into one type of investment can be a high risk strategy and concentrate risks to which you and that type of investment may be exposed. A managed approach to risk may be to diversify your investments you make across different companies’ securities and different asset classes.
- A potential lack of liquidity in securities may affect your ability to sell securities/exit your positions. CMC does not guarantee liquidity in securities of any Offering. You may not be able to sell securities/exit your position immediately (or at all), or at a price equal or higher to the initial buy price. CMC does not make an assessment of the liquidity of securities issued by any particular company. You should not assume that once you own any securities that you will be able to sell them quickly or at a price equal to or greater than the price you paid for them. Under certain conditions it may be difficult or impossible to exit a position.
- Certain securities displayed on CMC’s website may be unlisted, meaning they are not traded publicly on an exchange. Accordingly, it may be difficult to sell these securities at a reasonable price and in some circumstances it may be difficult to sell them at any price or obtain reliable information about their value. You should not invest in these types of securities unless you have carefully thought about whether you can afford to do so and whether the investment is right for you. We may specify additional terms that apply to an Offering for unlisted securities.
- Issuers of Offerings may not generate any operating revenue and may require further financing in the future in addition to the amounts raised pursuant to the Offering. There is a risk that your holding in securities will be diluted as a result of future capital raisings conducted by the issuer. This may result in a reduction of your proportional holding in securities of an issuer.
- A prolonged deterioration in general economic conditions (which may result from many factors, including an increase in interest rates or a decrease in consumer and business demand) could be expected to have an adverse impact on an issuer’s operating and financial performance and financial position and consequently the price of securities. In addition, investments in Offerings will be subject to broader systemic risks of disruption to the financial system caused by IT outages, economic downturns or large institutional failures. Such risks can be unpredictable and can result in price volatility, loss of investor confidence, significant losses and/or market failure.
- The companies displayed on CMC’s website may be early-stage companies, which carry a high risk of failure. You should only make investments in such companies if you are able to bear the loss of the whole of your investment. There is a risk of losing money when investing in smaller companies, including penny shares and companies that operate in high risk sectors and/or sensitive jurisdictions and/or undertake high levels of research and development, which require significant capital expenditure and may not produce income.
- CMC does not make any representation in relation to any Offering or the relevant issuer. The information on CMC’s website in relation to investment opportunities is obtained from the issuer and although CMC considers these sources to be reliable, it makes no representation as to the accuracy of the information provided. You should read publicly available documents including historical financial information relating to the issuer before investing in any Offering. Past performance is not a reliable indicator of future results.
- CMC’s services are provided on an execution-only basis. CMC does not make investment recommendations and no communication, through this website or in any other medium should be construed as a recommendation. We will not give you any form of investment advice or tax advice, or advise you about the merits of a particular transaction or otherwise.
- You may decide to invest in an Offering through the Direct Investment Model, meaning that you are applying for shares to be held with your broker. In this case, CMC is acting in the provision of corporate finance services to the issuer for its own account and may be remunerated by the issuer for these services. In such circumstances, CMC does not have any duties or responsibilities towards you for providing protections afforded to its customers or clients under the COBS Source Book or advising you with regard to the Offering, your participation and whether or not the shares are in any way a suitable investment for you, and you are not, and will not be, a customer or client of CMC.
- You may also decide to invest in an Offering through the Indirect Investment Model, under which we may enter into a CFD or Spread Bet with you that has the shares of the issuer as the underlying asset. Spread Bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. It is important that you read and understand the applicable Risk Warning Notice for leveraged products which can be found here..
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Investing in financial products involves taking risk. The value of investments can go up as well as down and you may receive back less than your original investment. CMC Markets UK plc trading as CMC CapX (“CMC”) does not provide investment advice of any kind and individual investors should make their own decisions or seek independent advice regarding the merits of entering into, and the suitability of, any investment. Nothing on this website and no communication from CMC should be construed as an investment recommendation. Only professional clients and eligible counterparties are eligible to participate in any offering in connection with CMC's services. There are inherent risks associated with investing in such offerings and such investments should only be made as part of a diversified portfolio. Nothing on this website constitutes an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Please read our Risk Warning before making any investment decisions.
CMC Markets UK plc (173730) and CMC Spreadbet plc (170627) are authorised and regulated by the Financial Conduct Authority in the United Kingdom.
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CMC CapX is the trading name of CMC Markets UK plc.