Alternative investment market (AIM)
The Alternative Investment Market (AIM) is the much, much younger sibling of the UK’s main stock market.
AIM was launched in 1994. It has less strict entry requirements and lower costs, which are designed specifically for smaller companies to help them raise and build a trading history.
It is still part of the London Stock Exchange (LSE) which originated way back in 1773. The LSE is a market on which shares are bought and sold.
Companies listed on AIM are referred to as growth businesses because they could be a success and grow big enough to reach the LSE’s FTSE 100 – the UK market on which the country’s 100 largest companies are listed – or they could fail completely.
For investors, AIM stocks are usually considered high-risk/high-reward investments.