Know your risks6 Jun 2024 17:57
Low liquidity in trading their stock.
Increased risk of an unproven business model encountering problems.
Higher risk of experiencing cash flow problems.
Capital is at risk, and investment can fall as well as rise in value, so you could get back less than you invest.
AIM-listed companies tend to be smaller, more volatile and subject to less stringent checks than those quoted on the main London Stock Exchange, so the risks are greater.
AIM shares are typically unstable, meaning they can fluctuate up and down rapidly, making investment more dangerous because the value of your stock can plummet before you have a chance to properly react and it may not recover its initial value.