AIM: The space for 'entrepreneurial and energetic' companies

Market's reputation is being rebuilt

Like many things on the edge of the mainstream, the Alternative Investment Market (AIM) suffers from scepticism.

Launched in 1995 for young, developing companies hoping for an eventual London Stock Exchange listing, it became popular because of its soft-handed regulatory framework and low cost of listing.  But this meant that for every company on AIM with real long-term potential, there were several with poor management and weak strategies, exploiting easy access to capital and the profile that comes with listing. Volatility and liquidity were real issues for investors, unable to sell their holding when they wish. But AIM has grown up and the average quality of businesses listed there has tra...