VCM20070 - EIS: general: arrangements to reduce risk: underpinning value

The second type of arrangements mentioned at VCM20060 consists of arrangements that are intended to protect the value of the investment in any way. This includes, for example, schemes that insure investors against making a loss, and schemes to maintain the value of the shares artificially. There is an exception for ordinary commercial practices such as insurance by the company against normal trading risks.