Free Advertising For Fundraising Events is something that many volunteers are looking for. In addition, if you purchase B Investment Shares, these are non-voting shares and may not be attractive to potential buyers. This means that you are unlikely to see a return on your investment until you are able to sell your shares. Any investment in shares made through Crowdcube may be subject to dilution in the future. Mini-bonds are a very different kind of investment to equity and you do not own a stake in the business issuing the mini-bond.
Instead you receive regular interest payments from the issuing company (the Issuer”) and then return your initial investment back at the end of the mini-bonds term (the maturity). In the event of an Issuer being unable or unwilling to meet payments of interest and capital, it is likely that you may lose all, or part, of your initial investment and receive no outstanding or future interest payments.
Mini-bonds purchased from Issuers pitching through Crowdcube may be transferrable if specified in the Bond Instrument, however they will not be listed on any formal investment exchange or secondary trading market such as the LSE ORB and so it may be difficult or impossible to find a buyer to purchase them. Investments in mini-bonds through Crowdcube should be viewed as a long term and illiquid investment. Sometimes things happen with the stock that cannot be traced to anything in the news or in the reports of the company.
This means it is unlikely mini-bond investors, whose unsecured investment sits below all of the previously mentioned in the pecking order, will have their initial investment or outstanding interest payments returned to them after higher ranked creditors are compensated. Acutely aware of my experience from when I was 12 years old, I realized, that whether I wanted to or not, it would probably be of great benefit to learn the language of the investment trade in order to ensure that I do what I can to maximize the investments I have inherited and do my best to try to circumvent or minimize any losses. Their investment funds can be likened to mutual funds (with insurance built-in).
But, even when a stock is going down, there is often some kind of news that will tell you the reason for the downward trend. Knowing why your particular investment has lost money can help soften the blow – especially if you can see that it is likely due to a temporary setback or that the situation can be addressed. They submit an annual report of the performance of your investment vehicle of choice.