6.3 Volatility in the stock market Flashcards
1
Q
Why does a volatile stock market cause problems for investors?
A
The market value of their asset holdings changes constantly and they are uncertain of their worth
2
Q
What are protected equity bonds?
A
Products designed to return a customer’s investment at the end of the time period while offering an annual return linked to the performance of the FTSE 100 stock exchange index.
3
Q
Why did protected equity bonds receive bad press leading to them no longer being available?
A
It was considered too complex and fees were too expensive
