stock exchange aim

Alternative Investments Market (AIM)

launched 1995

AIM is the London Stock Exchange's international market for smaller growth companies.

A sub market of the London Stock Exchange, allowing smaller companies to float shares with a flexible regulatory system. Flexibility is provided by less regulation and no requirements for capitalization or number of shares issued. Some companies moved on to join the Main Market, although in the last few years, significantly more companies transferred from the Main Market to AIM. AIM has significant tax advantages for investors, as well as less regulatory burden for the companies themselves. In 2005, 40 companies moved from the Main Market to AIM, while only 2 companies moved from AIM to the Main Market.

AIM has started to become an international exchange, often due to its low regulatory burden, especially in relation to the Sarbanes-Oxley Act. As of December 2005 over 270 foreign companies had been admitted to the Alternative Investments Market.

Over 2,500 companies have joined AIM - raising more than £34bn in the process, both through initial public offerings (IPOs) and further capital raisings. This capital has helped AIM-quoted companies of all kinds to fund their development and pursue their ambitions. Many companies have made the transition to the Exchange's Main Market following their success and positive experience on AIM.

In 2006 More USA.based businesses were crossing the pond in search of investment capital in the public market not burdened by USA regulations.

When the London Stock Exchange created AIM, the objective was to offer smaller companies - from any nation and any sector - the chance to raise capital on a market with a easier approach to regulation. With this in mind, AIM was designed to be a highly flexible public market offering unique attributes for companies and investors.

To join AIM, companies do not need a particular financial track record or trading history. There is no minimum requirement in terms of size or number of shareholders. This more flexible approach reflects the fact that AIM was designed for smaller growing companies.

AIM has a large, diverse and committed community of stakeholders, made up of various market participants. Specialist advisers are crucial to the market’s success, and range from dedicated Nominated Advisers (Nomads) who play a central role in the life of an AIM company, through to lawyers, accountants and brokers. Other important participants and stakeholders include investors, public relations (PR) and investor relations (IR) agencies who help companies join the market and make the most of their AIM quotation, and market committees and publishers focused on AIM and its companies.
The process of being listed on AIM should be somewhat familiar to U.S. issuers. It includes the creation of an offering document that contains the issuer's background and financial information. AIM requires the nominated advisor, referred to as a Nomad, to vouch for the to-be listed company's good name and subsequently maintains the security's profile.

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