{"id":959,"date":"2023-09-01T08:30:04","date_gmt":"2023-09-01T07:30:04","guid":{"rendered":"https:\/\/www.redstarwealth.co.uk\/blog\/?p=959"},"modified":"2023-03-11T14:41:42","modified_gmt":"2023-03-11T14:41:42","slug":"aim-shares-the-pros-and-cons","status":"publish","type":"post","link":"https:\/\/www.redstarwealth.co.uk\/blog\/aim-shares-the-pros-and-cons\/","title":{"rendered":"AIM Shares: The Pros and Cons"},"content":{"rendered":"

Before undertaking any investment or other financial decision, it\u2019s important to be aware of all of the potential advantages and drawbacks. So, let\u2019s have a look at the advantages and disadvantages of investing in AIM shares.<\/p>\n

What are AIM Shares?<\/h2>\n

AIM stands for Alternative Market Investment. It is a submarket of the London Stock Exchange which deals with small and medium size growth companies which are seeking to raise capital through an Initial Public Offering.<\/p>\n

The listed companies tend to be smaller and more speculative as regulations are rather relaxed compared to larger exchanges. This type of investment tends to be higher risk with the potential of higher rewards.<\/p>\n

Advantage: Potential of High Rewards<\/h2>\n

One advantage of AIM shares is the potential of reaping high rewards from your investment. The companies listed on AIM are still relatively young and in their growth stage, meaning there is the potential to earn more money off them than the mature companies on the FTSE index.<\/p>\n

A prime example of this is ASOS: listed on AIM in October 2001 at the price of 20p a share, these ASOS shares later reached \u00a371 a share by October 2014<\/a>. You can click here<\/a> to see their current price per share.<\/p>\n

Advantage: Tax Benefits<\/h2>\n

Tax benefits are one of the main draws of AIM share investment. Some of these tax benefits include:<\/p>\n