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Whipsaw Glossary

Currently viewing the definition of: Alternative Investment Market
 
 
 The alternative investment market (AIM) was established by the London Stock Exchange in 1995 as a replacement for the unlisted securities market. It is a junior market to the FTSE where smaller companies and companies with a few years trading history can get listed and raise capital for future growth and development. The regulations are less onerous than for companies with a full listing on the FTSE. For investors there are tax advantages to holding shares in AIM listed companies as they are classed as unquoted. This advantage needs to be weighed up against the fact that the shares are a more risky investment when compared to their FTSE counterparts. Also because there are fewer market makers, the shares are less liquid and the bid/offer spread is likely to be greater.  
 


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    • Ordinary Shares
      Ordinary shares are the shares authorised and issued when a company is incorporated. These shares usually carry voting rights and will have an entitlement to any declared dividend, although this is not guaranteed. In the event of the company being wound up, ordinary shareholders rank below creditors and preference shareholders.