Tiger16 Jun 2026 19:19
Being removed from a FTSE Russell index does not mean the stock has been removed from the AIM (Alternative Investment Market).AIM is an actual stock exchange (a sub-market of the London Stock Exchange), whereas a FTSE index is just a grouping of stocks used to track performance (like an average). A stock can remain listed and traded on the AIM exchange even if it gets removed from a FTSE index.What a "Removal" Actually MeansFTSE Russell maintains several different index series, each with specific rules for market capitalization (size) and liquidity (how many shares are traded).FTSE AIM Indexes: These track companies whose primary listing is on the AIM market (e.g., the FTSE AIM 100 Index).Main Market Indexes: These track companies on the main London Stock Exchange (e.g., the FTSE 100 or FTSE 250).If your company is removed from a FTSE Russell index, it typically means it failed to meet the criteria (usually size, trading volumes, or the proportion of freely traded shares) for that specific index.Common reasons for removal include:The company's value dropped: It may have grown too small to remain in a mid-cap or large-cap index.Low trading volume: Not enough shares are being bought and sold, violating liquidity rules.Reconstitution adjustments: Indices are reviewed periodically (often quarterly or annually) to ensure they accurately reflect market conditions. During these reviews, smaller companies are pushed out to make room for larger ones.