Alternative Investment Market is nothing but the London Stock Exchange has a sub-market which has been constructed to support and offer help to companies that are small start-ups so that they will be able to access funds from the public market. The small companies will be able to list themselves on a public exchange so that they will be able to be allowed to raise funds with the help of AIM which will allow doing so with much bigger regulatory flexibility in comparison to the main market. The companies that are willing to give initial public offering and hence want to list their company on AIM are mostly the companies that are small scale, and they want to do so because they would have spent all the chances of accessing the private capital and therefore are not in the positions to do initial public offering and neither are able to get listed on a big exchange. Read bitcoin profit system review. AIM is nothing but it refers to Alternative Investment Market and sometimes it is even referred to as London’s Alternative Investment Market in the financial news, it has been practiced by London Stock Exchange to refer it by its acronym itself.
Alternative Investment Market in Depth
Although being launched in the year 1995, the AIM possessed about more than 3500 companies by the year 2015. All these companies that AIM obtained were operating in about 100 countries and more throughout the world. During the same year, all these firms were able to raise funds more than 90 billion pounds with the help of AIM, which if we convert into USD will be 140 billion USD. There is maintaining of three indexes by the Financial times stock exchange group in order to track the AIM. The three indexes are as follows:
- The FTSE AIM 100 Index
- The FTSE AIM UK 50 Index
- The FTSE AIM All-Share Index.
For the companies to be listed on AIM the process that the company has to follow is the same as the traditional IPO. The only thing that is different is there are fewer conditions required. However, there is still a blitz known as pre-IPO marketing along with the financial information’s history so that the interested can be blended and there is a post-IPO lock up as well. For instance, there is a role known as nominee advisors who are known by the name ‘nomads, which is the main difference in this process. The nomads are nothing but the regulatory systems for AIM and their work is to do the following things:
- The advice for the pre-IPO is given to the company
- For the investors who are expecting to assess the prospectus, the due diligence is carried out by nomads.
However, this relationship between the AIM and the nomads is arguable because as in spite of nomads being the regulatory system they still make some amount of profits from the company that they are listing for in the form of fees. This has led to a lot of arguments since it is against the listing agreement.