Alternative Investment Market
The Alternative Investment Market (AIM) is a market segment on the London Stock Exchange London Stock Exchange , the terms of the regulatory principles as well as the function as entry-level segment in exchange trading with former Entry Standard of the Frankfurt Stock Exchange and the m: access of the Munich Stock Exchange is comparable. These stock exchange segments expand the legal framework of the open market to include private law regulations that must be met by the listed companies.
history
AIM was founded in 1995 as a market segment for smaller, high-growth companies without a long history. There are only few requirements for a stock exchange listing, which leads to a correspondingly heterogeneous quality of the listed companies. To date (as of November 2006) more than 2,500 companies have been approved.
criticism
Since the listing process is comparatively expensive, critics have voiced the suspicion that AIM was founded with the aim of generating business for the London broker community rather than providing inexpensive and flexible risk capital for new companies. One of the most important elements to be included in the AIM is the NOMAD, the Nominated Advisor. He carries out the listing and due diligence and then acts as a market maker .
In addition, there have been several cases in the past in which only superficial checks were carried out and in which access to the AIM was only used to raise capital quickly, without any equivalent value. This was particularly the case in the area of exploration and raw material stocks. Almost 50 percent of the companies listed in AIM now belong to this environment. Therefore, critics are calling for stricter controls.
Web links
Individual evidence
- ↑ FAQ catalog for Open Market / Entry Standard (on the DBAG Internet), page 20 (PDF; 248 kB) Accessed on September 21, 2015.