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.
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 in AIM shares can be illiquid as small volumes of business can have a disproportionate effect on price and lead to greater volatility. As a result, AIM investments tend to be more volatile than those with a full listing.
Are aim portfolios regulated?
BOTH ENTITIES ARE AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY. Capital at risk. The value of investments and the income from them may go down as well as up and you may not get back the amount you originally invested.
Is AIM a Recognised Stock Exchange?
AIM operates, and is regulated by the LSE in its capacity as a Recognised Investment Exchange.
Is AIM an OTC market?
The system has no publicly available order book and trades conducted in a quote driven market traded OTC.
How do you get listed on AIM?
There are no prescriptive eligibility criteria for joining AIM, however, a company must:
- Appoint a Nominated Adviser (‘nomad’) and retain their services for the duration of the time the company remains on AIM. …
- Appoint a corporate broker and retain their services throughout the time the company remains on market.
You won’t be taxed on dividends from AIM shares held in an ISA, nor will you have to pay Capital Gains Tax (CGT) on any of the profits you make.
Do Listing Rules apply to AIM companies?
AIM companies are not listed, and are hence not subject to the Listing Rules.
Can you short AIM stock?
A: Most spread firms will let you take out shorts on the biggest AIM stocks – mainly the top 50. They will all only take bets over the phone rather than on the net though! Finspreads quotes spread bets on UK stocks down to a market cap of £50 million although it will go lower if there is sufficient demand.
Are AIM stocks exempt from stamp duty?
Since 28 April 2014, SDRT & Stamp Duty have not been chargeable on transactions in eligible securities on London Stock Exchange’s AIM and High Growth Segment. Purchases made by Private Investors in an eligible security are therefore SDRT / Stamp Duty exempt.
Which AIM stocks qualify for IHT?
Shares traded on the Apex and Access segments of the Aquis Stock Exchange also qualify for IHT relief. IHT-related investments and portfolios represent an important component of the cash invested in AIM companies.
What qualifies BPR?
To receive BPR, you must have owned the business or business assets for at least two years before your death. So, if you pass away shortly after acquiring the asset, your estate won’t be eligible for the relief. The exception here is if you inherit the asset from your spouse, who also owned it for less than two years.
Are AIM investments risky?
Are AIM investments risky? There are always risks with investing, but those risks are more acute when buying AIM shares because: Shares of AIM-listed companies could be more volatile than shares listed on the London Stock Exchange. The dividend may be reduced or scrapped.
You can transfer any type of ISA, but please remember AIM ISAs are for experienced investors only. They could be more risky and illiquid than other types of ISA. Before transferring please make sure you are comfortable with the risks.