How to Invest in Alternative Investment Market Shares

The Alternative Investment Market, or AIM as it is known, is a sub-market of the London Stock Exchange. It was founded on the idea of allowing smaller companies to float shares. Running since 1995, it has raised £25 billion for 2,200 international companies.

Instructions

1. Find out if you qualify to join AIM. On the London Stock Exchange website (link below) there is a link to an ebook detailing all of admission criteria.

2. Find a Nomad. To invest with AIM you need to have what is known as a nominated advisor (Nomad) The London Stock Exchange has a list of registered and approved Nomads on their website.

3. Find a broker. This is different to a Nomad as will advise on issues such as the pricing of shares and investments rather than the rules and rugulations of AIM. Again the is a list of registered brokers on the London Stock Exchange website.

4. Invest in an AIM company. AIM shares are traded on the London Stock Exchange and your Stockbroker will try and buy a share at the best price available at the time of trade.

5. Get proof of your shareholding. Your Stockbroker will provide you with a statement of your share holding, which you need to keep in your records.

Tips & Warnings

• Some Stockbroking firms offer an online service. Though is quite an efficient method of acquiring their service they will still to verify your credit status and identity.

• Stock brokers charge commission for each transaction they make on your behalf. The current rate is 0.5%.

Resources

• London Stock Exchange