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Interviews

In: Risk and Trading on London’s Alternative Investment Market: The Stock Market for Smaller and Growing Companies

Author

Listed:
  • John Board

    (Henley Business School, University of Reading)

  • Alfonso Dufour

    (Henley Business School, University of Reading)

  • Yusuf Hartavi

    (Henley Business School, University of Reading)

  • Charles Sutcliffe

    (Henley Business School, University of Reading)

  • Stephen Wells

    (Henley Business School, University of Reading)

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.

Suggested Citation

  • John Board & Alfonso Dufour & Yusuf Hartavi & Charles Sutcliffe & Stephen Wells, 2015. "Interviews," Palgrave Macmillan Books, in: Risk and Trading on London’s Alternative Investment Market: The Stock Market for Smaller and Growing Companies, chapter 3, pages 5-6, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-36130-1_3
    DOI: 10.1057/9781137361301_3
    as

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