Many of these investors first became involved in the stock market in the 1990s when looking for a source of income to top up their pensions.
These investors – most of whom are elderly – are witnessing at first-hand how, as organisations evolve and restructure, seemingly straightforward investments can turn into complicated nightmares. Lloyds now wants to cancel the bonds, which means many of the investors will be unable to replace what they had seen as a long-term income and some may lose part of their original investment.
If you need a reminder of how complex investing in the stock market can be, look no further than the row currently raging between Lloyds Bank and up to 100,000 investors who helped to bail it out in 2009 by agreeing to take up some rather special corporate bonds.
