technology ·
How does it affect me if share prices fall?
The fall in the value of their shares across the world has been blamed on an expectation of a slowdown in AI development, although it comes after sharp rises over recent years.
As companies grow, they may issue shares. Many of the largest companies in the UK have shares which are bought and sold on the London Stock Exchange. Their collective performance is often quoted amid a blizzard of numbers that may feel confusing and irrelevant.
Booms or falls in the stock market make the news, but rarely does anyone mention the FTSE 100 during a coffee with friends. Yet, there are good reasons why this performance affects your life and finances. Many people's initial reaction to "the markets" is that they are not directly affected, because they do not invest money.
Yet there are millions of people with a pension - either private or through work - who will see their savings (in what is known as a defined contribution pension) invested by pension schemes. The value of their savings pot is influenced by the performance of these investments.
