Investors are being warned on the dangers of speculating on small high-technology stock by the Financial Services Authority and the Securities and Futures Authority.
FSA director of consumer relations said: “Consumers investing their money in smaller company shares need to know the prices of those shares can be volatile- both up and down. They need to think carefully about the risks involved before deciding what shares they buy and how many.”
The move follows the soar in trading volumes and fears about the losses some investors could face.
An HSBC Stockbrokers director Michael Savory, was among other leading brokers afraid the surge could be followed by an equally rapid fall, giving the public appeal of the sector a serious set-back.