Introduction

John Board, Alfonso Dufour, Yusuf Hartavi, Charles Sutcliffe and Stephen Wells
Additional contact information
John Board: Henley Business School, University of Reading
Yusuf Hartavi: Henley Business School, University of Reading
Stephen Wells: Henley Business School, University of Reading

Chapter 1 in Risk and Trading on London’s Alternative Investment Market: The Stock Market for Smaller and Growing Companies, 2015, pp 1-2 from Palgrave Macmillan

Abstract: Abstract We conduct an extensive empirical study comparing the relative riskiness of two UK equity markets run by the London Stock Exchange: AIM the market for growth companies versus the Main Market, the market for more established companies. AIM has been a considerable success. Even by its survival over 19 years it has succeeded in relation to similar markets in other countries. During that period it has seen rapid growth and has emerged as the market of choice for smaller, newer companies in the UK and increasingly elsewhere. Investors often perceive AIM as riskier than the Main Market for comparable stocks. At a superficial level we find that AIM stocks may seem more risky than comparable Main Market stocks, but as the analysis is refined to ensure that the comparisons focus purely on the effect of being on different markets the difference shrinks and finally disappears. This conclusion concurs with the market practitioner’s view that there is no significant risk differential.

Keywords: Regulatory Standard; Considerable Success; Trading Service; Introduction Abstract; Alternative Investment (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-36130-1_1

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137361301

DOI: 10.1057/9781137361301_1

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().