Alternative Investment Market

The Alternative Investment Market, or AIM, is a special part of the London Stock Exchange. It started on 19 June 1995 to replace an older market called the Unlisted Securities Market (USM). AIM was made for smaller companies or those that need simpler rules to sell their shares.

When it began, AIM had just 10 companies. By May 2021, it had grown to include many more companies. Many companies from other countries joined AIM because it has fewer complicated rules.

The FTSE Group keeps track of AIM companies using three special lists: the FTSE AIM UK 50 Index, FTSE AIM 100 Index, and FTSE AIM All-Share Index. These help people see how well these companies are doing over time.

Regulatory model

AIM is a special part of an exchange with flexible rules for companies that want to share their stocks. Companies can follow these rules or explain why they do not.

To help companies, each one must work with a special helper called a Nominated Adviser, or Nomad. This helper gives advice and makes sure the company follows the rules.

AIM does not have many strict rules like other markets. This means companies can join with fewer requirements and simpler rules. However, big investors might sometimes try to take advantage of these companies. Companies on AIM still need to follow their country’s rules and prepare yearly reports.

AIM is popular with big investors and wealthy individuals because the companies there are smaller and can be riskier. This can be tricky for investors who are not very experienced.

Market capitalisation

The following table shows the 10 biggest AIM companies as of 31 May 2021.

Companies

The following table shows the top 100 AIM companies by market size on 25 April 2020.

Criticism

In 2007, a U.S. official said AIM’s share trading rules were like a casino. But the London Stock Exchange, which runs AIM, said only a few companies close each year.

AIM had problems when a company named Langbar International lied about its assets. In 2011, its former leader was punished for false statements about the company’s money. This led to changes in AIM’s rules to check companies better before they join.

Trends

In March 2007, a newspaper noticed that many companies joining AIM came from places outside the UK before they started trading there. About 35% of the companies that joined AIM in 2006 were from special areas known as offshore financial centres, mostly from the Channel Islands or the British Virgin Islands.

In January 2009, it was announced that AIM would help create a new market in Asia called 'Tokyo AIM'. This new market would use the same rules as AIM and be a partnership between the Tokyo Stock Exchange and the London Stock Exchange. In July 2012, Tokyo AIM changed its name to TOKYO PRO Market, but it still used the original ideas from AIM.

Dividends

Some companies on AIM have paid money to their owners in the past year. Bigger companies that paid money include Fevertree Drinks PLC (FEVR), Burford Capital Ltd (BUR), and Abcam PLC (ABC). Smaller companies that paid money include Holders Technology PLC (HDT), Aeorema Communications PLC (AEO), and Stilo International (STL).