When does an AIM share 'turn into' FTSE?

longwalks1

If it ever does? Just wondered if an AIM share does really well, and becomes very popular, does it join the FTSE, possibly even the FTSE100?

New to share dealing and wondered what happens when the smaller, or up and coming companies hit the big time, do they get 'promoted' up a league?

And does it effect share prices? A lot of AIM shares are pennies, and a great deal of FTSE share prices are well over £10

Or am i reading it wrong? Anything in laymans terms greatly appreciated

JonnyBravo

They decide it.
Delist from AIM and pay to move onto the more expensive LSE.
FTSE100 is simply the largest 100 of those companies. It changes as prices go up and down. They review it a few times a year.

ses6jwg

There is lower costs and therefore lower regulation on the AIM markets.

Generally, most AIM shares that move to LSE tend to do well at first as it means more of the fund managers can buy into them.

One company which made the move fairly recently from memory was the oil explorer Afren.

Reaper

It can go the other way too. The troubled JJB Sports chain is planning to switch to AIM to save money.

sabretoothtigger

Not a positive sign, they should probably delist altogether


It goes with size because of economies of scale, at some point ftse listing is more benefit then cost and the added regulation adds confidence from investors and helps the company raise share capital more easily and also finance generally I expect.

Can aim shares be bought as easily from abroad Im not sure, I think they get a wider market being on ftse


http://www.londonstockexchange.com/companies-and-advisors/aim/aim/aim.htm