Sunday, July 25, 2010

Alternative Investment Market (AIM)

This was started in 1995 to replace unlisted securities market. The AIM was introduced so that even the companies which do not meet the conditions laid down by the main market can have their shares traded in the AIM. The following conditions relate to the AIM.

• There are no eligibility criteria. (Past track records is not needed)

• Any type of security can be traded as long as there are no restrictions on the ability to transfer the ownership

• There are no stock exchange requirements for purchasing of shares by the general public or the number of shareholders.

• There are few obligations to issue shareholders circulars, therefore public announcements will be sufficient

• Every company which has its shares traded on the AIM must have a nominated adviser selected from the official list. This adviser will instruct the company on how it’s shares are to be traded in the AIM. In addition a stock broker should also be selected where this stock broker must be a member firm of the stock exchange

• Documents provided for admission to the AIM will be the responsibility of the directors. Therefore it will not be reviewed by the exchange

• The shares traded in the AIM will be treated as unquoted shares for tax purposes

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