ALTERNATIVE INVESTMENT MARKET


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Launched in 1995, the Alternative Investment Market is the London Stock Exchange’s international market for smaller growing companies. The businesses traded on the market vary greatly from small start up companies to more established firms that are looking to expand. Since its creation, over 2,500 companies have joined the Alternative Investment Market in order to raise the capital that they need to fund their development and pursue their ambitions. Many companies have experienced enough success on the AIM that they have since moved to the Exchange’s Main Market, but more commonly, companies have made the switch from the Main Market to the AIM and decided to stay there. Since the Market’s launch twelve years ago, the AIM has helped companies raise over 67 million dollars through initial public offerings and additional capital raisings.

The AIM was designed to provide smaller the opportunity to raise capital, regardless of their industry or country of origin. The Alternative Investment Market is truly global and offers a pragmatic and appropriate approach to regulation. The AIM has always been a flexible public exchange that provided unique opportunities for companies and investors, alike. Unlike many other stock exchanges around the world, companies wishing to join the AIM are not required to supply a particular financial track record or trading history. Size and number of shareholders do not play a role in determining eligibility either. The lack of these requirements is for the direct benefit of smaller growing companies and has made the AIM one of the leading global growth markets. The market is not without rules, and provides a balanced regulatory climate for trading.

The companies traded on the AIM come from around the world and represent a multitude of industries. Currently there are more than 1500 companies quoted on the AIM from more than 26 countries. The companies traded on the AIM do share one common trait: they all have a dynamic corporate outlook and a strong ambition to expand their business. The AIM was designed specifically for smaller firms, but companies of any size are invited to join the AIM, provided they posses this desire for growth and profitability.

Upon joining the stock exchange, each company is required to appoint a Nominated Advisor (Nomad). This unique position performs crucial functions for the listed company such as pre-vetting and determining the company’s suitability and regulating any market issues that arise during trading. Investment Bankers with market experience are suitable Nomads. Another crucial member of the stock exchange is an AIM Broker. Brokers are responsible for overseeing and promoting trade in the company’s shares on the market. Often times a company’s broker is the same as its Nomad. Market Specialists are also tasked with enhancing the success of the companies traded on the market. These individuals are usually lawyers, accountants and investor relations professionals and play an imperative role in the AIM. Market Specialists advise and support listed companies as they join and are traded on the AIM.