Alternative Investment Market
The Alternative Investment Market ( AIM) is a stock exchange segment of the London Stock Exchange London Stock Exchange, which is comparable in terms of the regulatory basis and the economic function as entry-level segment in the stock market trading with the German Open Market.
The AIM was founded in 1995 as a market for smaller, high-growth companies without a long history. There are only minor requirements for a stock market listing, which leads to a correspondingly heterogeneous quality of listed companies. To date (as of Nov. 2006) more than 2,500 companies have been approved.
Since the listing process is relatively expensive, is voiced by critics of the suspicion that the AIM was rather founded with the aim to generate business for the London broker community to raise as cost-effective and flexible risk capital for new companies. One of the key elements to be included in the AIM, the Nomad, the Nominated Advisor. This takes you through the listing and due diligence and acts afterwards as market makers.
Moreover, there was in the past, several cases in which took place only superficial inspections and where access to the AIM was used only for fast capital raising, without a counterpart was. This was especially the case in the field of exploration and resource values . By now include nearly 50 percent of the companies listed in the AIM for this environment. Therefore, a closer inspection is required by critics.