Here are two key risks to be aware of when investing in growth-focused businesses, such as Talio:
- The value of your shares depends on the success of the company. So if the company is unsuccessful and decreases in value, the value of your shares will also fall. If the company fails completely and goes out of business, you would lose all of your investment.
- Being a private company, Talio shares are illiquid as they’re not traded on a public market. This means they can be difficult to value and sell. Even if the business is successful and your shares increase in value, they can still be difficult to sell. You should therefore be prepared to hold your shares for the long-term.