What are the limitations of investment in shares?

Limitations of Investment in Shares:
(1) Uncertainty of income/return: The return as regards investment in shares is
uncertain as it is linked with the profitability of the company. The investment in shares
may prove to be unremunerative if the profit earned by the company is less.
(2) Risky investment: In the case of shares, there is an element of risk as regards
changing market values. The share price may go down due to various reasons. This
is bound to affect the investor seriously. Secondly, selling at a low price is bound to
bring financial loss. This suggests that investment in shares is always risky.’
(3) Speculative activities are harmful: Speculative activities are quite common as
regards shares. However, such speculative deals affect genuine investors and they
may suffer loss even when they are not directly involved in such speculative
activities.
(4) Future linked with the company: In the case of shares, the future of the
shareholder is linked with the future of the company. The return on investment will be
attractive, if the company makes good profit. However, a shareholder may not get
any return on his investment if his company fails to get reasonably high profit.