AIM Market

AIM Shares

AIM stands for the Alternative Investment Market. It is part of the UK London Stock Exchange, it specialises in small cap stocks which allows smaller companies to raise cash to expand and grow their businesses.

The Aim Market has over 1,000 stocks listed on it. The majority of these are within the UK but there is a sizable minority of around 200 that are outside the UK.

AIM a regulated market

Companies listed on the AIM market have to meet a strict regulatory criteria.  For a company to be issued on to the AIM market they need another party to guarantee them, these entities are called Nominated advisers (NOMADs). NOMADs have to be approved by the LSE and are usually Auditors or Brokers. The LSE rely on NOMADs to perform "due diligence" upon the company that is going to be listed on the AIM. NOMADs research each company confirming that they are who they say they are, function in the way they say they do, and own the assets they claim to own. The NOMAD charges a fee for this service.

Aim Market

Small Caps

Small cap stocks on the AIM market have less capital and fewer shares than the bigger companies on the LSE main market. They do not generally trade as often as shares on the LSE main market, and thus represent a greater investment risk than larger cap stocks.

All companies listed on the AIM market have to provide a website for investors to view all regulatory reports, announcements and initial prospectus documentation created when the company was first listed. These investor relations sites can be immensely helpful when researching the history or current status of a company.

AIM is regulated by the FCA.