Shares are considered higher risk because as a shareholder, you are an owner, not a lender. If the company fails, lenders are paid back first. Shareholders are last in line, which means you could lose your entire investment. This higher risk is the trade-off for potentially higher returns.

The key risks to understand are:

• Capital Risk: The company's value can fall, meaning your shares could be worth less than you paid for them.
• Liquidity Risk: It may be difficult to find a buyer for your shares when you want to sell, especially if the company is private.
• No Guaranteed Returns: Unlike a savings account, profits are not guaranteed. The company may not grow or may decide not to pay dividends.
• Insolvency Risk: As mentioned, if the company goes bankrupt, you are last in line to be paid back.
• Dilution Risk: The company might issue more shares in the future to raise more money. When this happens, your shares represent a smaller percentage of the company.

Every investment has a unique risk profile, which is always detailed in its legal documents.