April 18, 2006
At the recent SEC Conference call for the Advisory Committee on Smaller Public Companies (ACSPC) some of the committee members were very interested in the progress of the AIM exchange. They were worried about the impact on the future of US markets.
They will enjoy success from companies who cannot pass muster with the capitalization requirements in other markets. Also, AIM is receiving a lot of investment from the Middle East. The question is this: Would money from oil rich middle eastern countries be invested in the US markets to the same extent given the tensions and strife between the US and several of these same countries? So when you ask the question about the success of AIM is all because of Sarbanes-Oxley or things possibly nearer and dearer to the American heart?
It is not all about Sarbanes-Oxley after all but about the friends you keep and the battles you must fight.
The other real question that will determine the long term success or failure of the AIM is not so much how many firms they can bring to market. Frankly, Canadian markets have been quite good for years at bringing smaller firms to market. The real challenge is can you get analyst coverage such that you can get any "heat" in your trading volume. No heat, no upside. No upside, no future capital investment.
An article, from the Globe and Mail, cites some interesting facts about the AIM market.
" And the number of foreign companies that have gone public here has almost doubled to 226 in that span. The surging resource market has had a big hand in AIM's success, as have general economic conditions, which are flooding the world's markets with liquidity. Companies appreciate the fact that “class-action” is virtually a foreign word in the U.K. market, while investors have been enticed with several tax advantages (as long as you hold an AIM stock for three years, you can pretty much eliminate any capital gains tax, which discourages people from flipping stocks)....Flexibility might be an understatement. For many Canadian investors, the AIM structure can look downright bizarre. There are no minimum requirements for market size or trading track records, and companies do not have to issue quarterly reports, which cuts down considerably on costs." For the complete article, click here.
If your company is traded on North American exchanges and files quarterly reports and needs to meet regulatory requirements of Sarbanes-Oxley or 52-109, see www.issuescentral.com to learn more about Compliance Playbook(tm) or www.compliancepartner.ca for Compliance Partner(tm).
They will enjoy success from companies who cannot pass muster with the capitalization requirements in other markets. Also, AIM is receiving a lot of investment from the Middle East. The question is this: Would money from oil rich middle eastern countries be invested in the US markets to the same extent given the tensions and strife between the US and several of these same countries? So when you ask the question about the success of AIM is all because of Sarbanes-Oxley or things possibly nearer and dearer to the American heart?
It is not all about Sarbanes-Oxley after all but about the friends you keep and the battles you must fight.
The other real question that will determine the long term success or failure of the AIM is not so much how many firms they can bring to market. Frankly, Canadian markets have been quite good for years at bringing smaller firms to market. The real challenge is can you get analyst coverage such that you can get any "heat" in your trading volume. No heat, no upside. No upside, no future capital investment.
An article, from the Globe and Mail, cites some interesting facts about the AIM market.
" And the number of foreign companies that have gone public here has almost doubled to 226 in that span. The surging resource market has had a big hand in AIM's success, as have general economic conditions, which are flooding the world's markets with liquidity. Companies appreciate the fact that “class-action” is virtually a foreign word in the U.K. market, while investors have been enticed with several tax advantages (as long as you hold an AIM stock for three years, you can pretty much eliminate any capital gains tax, which discourages people from flipping stocks)....Flexibility might be an understatement. For many Canadian investors, the AIM structure can look downright bizarre. There are no minimum requirements for market size or trading track records, and companies do not have to issue quarterly reports, which cuts down considerably on costs." For the complete article, click here.
If your company is traded on North American exchanges and files quarterly reports and needs to meet regulatory requirements of Sarbanes-Oxley or 52-109, see www.issuescentral.com to learn more about Compliance Playbook(tm) or www.compliancepartner.ca for Compliance Partner(tm).
