The London Stock Exchange's small-cap market provides opportunities for junior companies to gain the benefits of a public listing

摘要

There is an emerging trend in the world financial markets - the growth of non-U.S. marketplaces catering to small-capitalization (small-cap) companies. These markets have been established specifically to provide small-cap companies with access to the large capital markets and industrial investors previously only available through major markets such as the New York Stock Exchange and the London Stock Exchange. Listing on such a marketplace allows a company to raise capital, create an objective market value for its business, raise its international profile, gain credibility as a publicly traded corporation, and obtain currency in the form of traded shares which may be used to make acquisitions or reward employees (through share incentive plans). Further, listing in a small-cap marketplace can prepare a company, or signal its readiness, for future entrance into a major stock market. One such small-cap marketplace is the London Stock Exchange's Alternative Investment Market (AIM). AIM has grown dramatically over the past several years and is being used increasingly by mining companies worldwide.