In the past year, the Stockholm Stock Exchange has risen sharply and during the first quarter of the year a record was broken in the number of IPOs.
High risks
However, several experts now warn of high risks in today's stock market climate, when very many companies want to list at the same time as the values are high.
- Smaller investors who have not done their homework believe that it is easy to invest in an individual company.
But you can go for a pretty big zeal if you put the money in the wrong company that then is unable to deliver the profits that the share price predicts will come, says Joacim Olsson, CEO of Aktiespararna, and continues:
- The more companies we have, the greater capital needs to be available on the stock exchange for there to be liquid trading.
If we get too many companies where there is not much trading, you can end up with your hard-earned money in a company where it is very difficult to sell at a sensible price on the day when you need the money.
"Black sheep"
Affärsvärlden's editor-in-chief Peter Benson also warns of high risks now that an unusual number of companies are listed on the Stockholm Stock Exchange.
- In a large herd of companies, it is easier for "black sheep" to hide.
Among good companies or perfectly okay companies, there can be really bad companies.
And that risk increases in a very hot stock market climate with many new listings, says Peter Benson, and continues:
- When there is a hot stock market climate, the average level of companies often tends to be a little lower.