What is the AIM market?

By THIS IS MONEY
Updated:

 

I bought a stock which is not quoted on the main market but on AIM. What does AIM mean and what problems will I encounter when I come to sell, ie, if I used an online dealing service or my local NatWest branch? NS, London

Richard Hunter of NatWest Stockbrokers says: AIM - the alternative investment market - was formed in June 1995 and is geared towards small, young and growing companies, by offering them a market listing but with less stringent and less expensive listing requirements than the standard stock exchange requires.

It is fully regulated and almost a subsidiary of the London Stock Exchange, but because the companies quoted on AIM are 'growth' companies, such as hi-tech companies, their shares may be less easy to trade and the investment may be higher-risk.

So be careful when thinking about buying AIM shares. Unless you are dealing in large numbers of shares, you should see little difference between trading AIM shares and ordinary shares. Contact your broker or bank in the usual way and they will deal accordingly. It should be straightforward to trade them through the bank or online.

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