Alternative Investment Market (AIM)
AIM is the London Stock Exchange's international market for smaller but growing companies. The London Stock Exchange created AIM to offer smaller companies the opportunity to raise capital on a market with somewhat more flexible regulatory rules. Companies do not need a particular financial track record or trading history to join, and there is no minimum requirement for size or number of shareholders.
AIM lists a variety of businesses from start-ups backed by venture capital to established organizations looking to expand. AIM has its own rulebook, written in plain English to make the rules as transparent and comprehensible as possible. The rulebook is updated through an ongoing process of consultation between the exchange and the AIM community, to ensure that the rules remain practicable and appropriate for smaller growing companies.
Since its launch in 1995, over 2,900 companies have joined AIM through initial public offerings (IPOs) and the further raising of capital. Many companies have made the transition to the exchange's main market following activity on AIM.
AIM has a large and diverse community of stakeholders which includes a variety of market participants including: companies, nominated advisers, AIM brokers, market specialists, investors, and the exchange's AIM team.
The AIM team includes specialists in areas related to the market who are on hand to provide advice, information and support for AIM participants.
Specialist advisers range from dedicated Nominated Advisers (Nomads) to lawyers, accountants and brokers. Also playing a role are public relations (PR) and investor relations (IR) agencies who help companies join the market, and market committees and publishers focused on AIM and its companies.
As of 2005, AIM was the second largest European market by number of companies after the London Stock Exchange’s own main market.
To join AIM, companies do not need a particular financial track record or trading history. There is also no minimum requirement in terms of size or number of shareholders. This more flexible approach reflects the fact that AIM was designed specifically for smaller growing companies and to provide a balanced regulatory regime for companies and investors.
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 and investor relations agencies who help companies join the market, and market committees and publishers focused on AIM and its companies.
AIM trades small-caps, or new enterprises with high growth potential.