Key Takeaways. The Alternative Investment Market (AIM) is a specialized unit of the London Stock Exchange (LSE) catering to smaller, more risky companies. The companies listed on AIM tend to be smaller and more highly speculative in nature, in part due to AIM’s relaxed regulations and listing requirements.
The market had a strong 2020, outperforming the broader UK equity market by 33 per cent, and its record this year has continued to be good. … Harry Nimmo, co-manager of investment trust Standard Life UK Smaller Companies, is a fan. He says: ‘AIM is the envy of the world in terms of its depth and scale.
What is meant by AIM listed?
AIM (formerly the Alternative Investment Market) is a sub-market of the London Stock Exchange that was launched on 19 June 1995 as a replacement to the previous Unlisted Securities Market (USM) that had been in operation since 1980.
On the whole, AIM shares are treated just the same as those on the Main Market, in that income generated through dividends is taxable, and gains are subject to Capital Gains Tax (CGT).
Tax incentives for companies investing in AIM companies
Although shares and securities traded on AIM are colloquially referred to as ‘listed on AIM’, they are in fact not listed, but rather admitted to trading on AIM.
AIM shares tend to be higher risk than those traded on the main market, but the constituents of AIM span a similarly wide range of commercial activities. Generally, there is less trading in AIM stocks meaning they are typically less liquid than their main market peers, i.e. share prices can be volatile.
On the SETSqx platform, by contrast, trading is done via market makers. The market maker facilitates liquidity – ensuring that the stock can be bought and sold – by offering a two-way quoted price on the stock they are dealing in. Market makers offer both a buy and a sell price.
What is the difference between AIM and main market?
The Main Market is made up of ‘premium’ and ‘standard’ listing regimes. … The alternative investment market, or AIM, is the LSE’s exchange for smaller and growing organisations. It has a simplified regulatory environment designed for the needs of small and emerging companies.
How many stocks are on AIM?
The AIM, which was established in 1995, currently has (839 companies as of 4 June, listed on the market.
Is AIM a Recognised investment exchange?
AIM operates, and is regulated by the LSE in its capacity as a Recognised Investment Exchange. … AIM is a prescribed market and is also designated as a SME growth market.
In August 2013 ISA rules were changed to allow shares listed on the Alternative Investment Market (AIM) to be held in an ISA for the first time. … By allowing these shares to be bought and held within an ISA, investors are able to shelter any potential gains from Capital Gains Tax.
Investors hoping to draw an income from their holdings might be surprised by the number of AIM companies rewarding shareholders with a dividend. As of May 2020, AIM dividends have tripled since 2012, compared to a 45% increase on London’s main market pay-outs.
Not every investment or interest in a business will qualify for BPR, but BPR will typically be available for: Shares in an unquoted qualifying company, even a minority holding. Shares in a qualifying company listed on the Alternative Investment Market (AIM)
How do you buy AIM stocks?
In terms of getting your hands on AIM shares, the process works largely the same as any other stock investment. That is to say, you will need to find an online broker that gives you access to the AIM exchange. Then, upon opening an account and depositing funds, you will need to choose which AIM shares you wish to buy.
Are AIM companies on the Official List?
AIM companies are not listed, and are hence not subject to the Listing Rules.
Why do companies list on AIM?
Places a value on the business. Tax incentives available for investments in AIM companies attractive to both individual and institutional investors. Enhances the company’s public profile. Gives shareholders the opportunity to realise all or part of the value of their shareholdings.