AIM in London Stock Exchange Research Paper Example | Topics and Well Written Essays - 4000 words

AIM in London Stock Exchange - Research Paper Example The main advantage of this system is that it has reduced the regulatory barriers and constraints and has been able to attract new firms in the market and lot of investment in the market. Alternative investment Market is required to comply and abide by certain specified rules and regulations that has been established in accordance with the rules and regulations that has been established by the act of Financial Services and Market. The Alternative investment market does not include the corporate governance and therefore it has been advised that the NOMADS are required to follow the principles or regulations that have been introduced by the London stock exchange. The rules and regulations includes that the Nomads must be the member of the firm that is associated with professionals of corporate finance and it is required to be approved by the London Stock exchange. The exchange has also provided benefit for the private regulators that is an incentive will be offered for enhancing its value in the market. The main objective behind appointing the Nomads are that it is appointed as the private gate keepers or as the watch dog in deciding whether the companies that are willing to list their shares in the market are appropriate or preferable for the market and they are the supervisors for monitoring the companies or the firms for ensuring that the standards related to the exchange that is regulated by the corporate governance are fulfilled. The needs and requirements of AIM are very flexible in nature and it does not require market capitalization and also trading requirement. It measures the appropriate value of the cost of the investors. The regulators of Alternative investment market that is the nomads are engaged in the preparation of the working capital report, pro forma financial information, historical financial information and also the report on the financial procedures. The importance of AIM can be observed from the fact that AIM is flourishing and its