Interviews

John Board, Alfonso Dufour, Yusuf Hartavi, Charles Sutcliffe and Stephen Wells
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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 3 in Risk and Trading on London’s Alternative Investment Market: The Stock Market for Smaller and Growing Companies, 2015, pp 5-6 from Palgrave Macmillan

Abstract: Abstract The interview program suggested four conclusions. First, while AIM has less demanding minimum requirements than the Main Market (for example in terms of free float) the Nominated Advisors (Nomads) almost always insist that new AIM companies exceed minimum standards, and in practice, standards are similar to those of the Main Market. Second, although AIM, in its earlier days may have been more risky, its growth in recent years and the diversity of companies attracted to the market mean that risk is now much lower, and AIM companies are not significantly different in risk terms from comparable companies on the Main Market. Third, age (since admission) of a company is an important factor in determining risk, but after a relatively short time, perhaps two to three years, its importance disappears. Finally, in AIM (and the Main Market) there is a segmentation between larger, investable companies and a non-investable group – typically very small companies. The non-investable portion is high-risk by nature because it is difficult to trade.

Keywords: Market Stock; Venture Capitalist; Fund Manager; Small Company; Investable Company (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-36130-1_3

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DOI: 10.1057/9781137361301_3

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