AIM, or the Alternative Investment Market, is a sub-market of the London Stock Exchange for smaller, growing companies to raise capital. It offers a more flexible regulatory environment compared to the main market, making it accessible for companies that may not meet the full criteria for a main listing. AIM companies can be from various sectors and countries and are often considered higher risk and speculative due to the less stringent rules, making them attractive to more adventurous investors.

Key features of AIM

Purpose: To help small and medium-sized growth companies raise capital publicly.

‍Regulation: A more flexible regulatory system compared to the main London Stock Exchange (LSE) market.

‍Companies: Includes a diverse range of companies from different sectors and countries, though they are typically smaller and more speculative.

‍Entry requirements: There are no minimum size or profitability rules, and companies can even list without a trading record.

‍Structure: It is a multilateral trading facility (MTF) and a prescribed market, not a regulated market.

‍Advisors: Companies must appoint a Nominated Adviser (NOMAD) to guide them through the process and ongoing compliance.

‍Historical context: Launched in 1995 as the replacement for the Unlisted Securities Market.

‍Investor profile: Often seen as a hunting ground for investors willing to take on higher risk for potentially higher growth.