![]() ![]() In 2008 just 34 companies joined AIM, raising £537.14 million against the 77 with combined new capital of £2.1 billion that joined in 2007.Ĭompanies continued to leave the stock exchange in 2009, and although numbers stabilised a little in 2010, the government still felt the need to stimulate AIM in its 2010 budget. Market de-listings doubled in 2008/09 compared to previous years. When the credit crunch hit in 2008, dozens of companies abandoned AIM or were forced to leave because of things like a takeover, insolvency or financial stress due to the pool of capital drying up. ![]() AIM was hit hard when the dot-com bubble burst in 2000, losing almost half its value between 20 (compared to the FTSE All Share Index, which fell just 16% in that same period). Loose regulation and the compact size of listed companies means that, in theory, AIM shares are riskier investments than those on the main market. AIM doesn’t have these requirements, which means smaller, fast-growing entrepreneurial companies use it to seek outside investment through a stock offering.Įssentially, AIM allows small companies with an idea and a dream to seek funding, grow, throw themselves at the mercy of the market and, occasionally, go bust. The LSE’s main market requires potential listees to have existed for at least three years, have a market value of at least £700,000, float at least 25% of their share capital, and have enough working capital for at least a year’s trading. The USM was characterised by loose regulation, and AIM’s regulations are looser still. AIM was set up in 1995 to replace the Unlisted Securities Market (USM), which had been operating since 1980. ![]()
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