London Stock Exchange

If you're curious about pursuing a securities-based loan on the London Stock Exchange (LSE) or Alternative Investment Market (AIM), now maybe be the time to do it.

Loans Against AIM/LSE Listed Securities

Stock loans are a useful way to get access to the funds you need quickly. Learn more about these two important UK financial markets, and what types of opportunities are available within each market for investors.

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London Skyline

What is the AIM?

The AIM is an acronym for the Alternative Investment Market. The Alternative Investment Market is a smaller market that is part of the London Stock Exchange (LSE). The AIM launched in 1995 and replaced the Unlisted Securities Market (USM) that had been operating before that.

In the years that it has been in operation, the AIM has grown significantly. Over 3,500 companies participate in this market, and the exchange operates in over 100 different countries. To track the AIM, the Financial Times Stock Exchange Group (FTSE) uses the following indexes: the FTSE AIM All-Share Index, the FTSE AIM 100 Index, and the FTSE AIM UK 50 Index.

General Purpose Loan vs. Margin Loan

Our rates are very competitive compared to traditional margin loans!

$25K $50K $100K $500K
Stock Loan Solutions 10.000% 9.000% 8.000% 7.000%
E-Trade 13.700% 13.200% 12.700% 12.200%
Fidelity 13.075% 12.125% 12.075% 11.825%
Charles Schwab 13.075% 12.125% 12.075% 11.825%

AIM Regulation

For the most part, the Alternative Investment Market has more flexible regulations compared to the main market. It is often viewed as self-regulated. For this reason, it is used by smaller companies, which may be riskier, to access capital from the public market. The companies found on the AIM also tend to be highly speculative and small-cap. The regulatory system of the Alternative Investment Market is largely overseen and processed by the AIM nomads.

AIM Nomads

Nomads, also known as nominee advisors, play an essential role in the AIM regulatory process. Nomads are expected to advise companies before an initial public offering (IPO). Nominee advisors are also expected to keep up with and oversee regulatory compliance. AIM nomads also face specific criticisms in light of the AIM’s light-touch regulation. Some point to cases of nomads who have failed to complete these tasks. It can also be noted that nomads profit in fees from the companies that they list.

What is the LSE?

The AIM, as previously discussed, is a sub-market of the London Stock Exchange (LSE). The London Stock Exchange is the primary stock exchange in the United Kingdom. It is also one of the largest markets in Europe. Internationally, it is a focal point for trade, insurance, and banking. The LSE also has a long history.

It originated in 1698 when local broker John Castaing began posting prices of commodities and stocks. In the 19th century, as the exchange continued to grow, it also took on more regulation efforts. In 2007, what was previously known only as the London Stock Exchange merged with the Borsa Italiana and the Milan Stock Exchange to form the London Stock Exchange Group (LSEG). The Financial Times Stock Exchange 100 is the dominant index for the LSE. It contains 100 of the top blue-chip stocks.

LSE Regulation

One of the most critical moments in the London Stock Exchange’s regulatory history was an event known as the “Big Bang.” In 1986, the UK government ushered in major waves of deregulation. The deregulation included a switch from a traditional open outcry trading system to a screen-based electronic system. It also got rid of fixed commission charges. Many of these deregulation efforts opened the LSE up to global traders and allowed it to compete with other major markets.

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Benefits of the London Stock Exchange

Companies that are listed on the LSE have access to a wide range of benefits. Some of the services include:

  • Media coverage

  • Access to research and announcements

  • Real-time pricing

  • FTSE UK Index Series benchmarking

Companies may join this market in several different ways, including:

  • Standard segment

  • Premium segment

  • High Growth segment

  • Specialist Fund segment

About London and the UK

The London Stock Exchange and its submarket, the Alternative Investment Market, are two major players in the London financial markets and across the United Kingdom.

The UK is just northwest of mainland Europe and includes England, Scotland, Wales, and Northern Island. The UK is a prominent European country with a busy and successful economy. With London as its capital city, it has a total population of over 66 million people and is a world leader in trade.

London Stock Loans

Stock loans are an essential element for investors participating in the London Stock Exchange and the Alternative Investment Market. This type of lending, also known as securities-based lending , uses shares of publicly traded stock to secure a loan.

In this case, if a borrower takes out a London stock loan, their loan would be secured by shares of stock that trades on the LSE or AIM. Many people prefer to use a securities-based loan because it protects their other personal assets.

Benefits of Stock Loans

Stock loans are also a popular type of lending because of the direct benefits that they offer. This includes:

  • No Credit Checks: Unlike most traditional loans, stock loans do not require a credit check for a borrower to qualify. Because you aren’t personally liable for your stock loan, your credit score isn’t affected either if you default on the loan.

  • Liquidity: Stock loans are also popular because of the liquidity that they offer. Borrowers don’t need to sell their stocks and incur tax liabilities to access the underlying cash. . Once the borrower closes a stock loan, they can access the funds they need.

  • Better Interest Rates: Interest rates are an essential element when it comes to taking out a loan. Compared to other types of lending, stock loans usually have more competitive interest rates.

Ready to Get Started with a London Stock Loan?

If you are a current investor who owns shares that trade on the London Stock Exchange or the Alternative Investment Market in the UK and want to apply for a stock loan, let us help you navigate the process.

Our team is well-versed in the current markets. Contact one of our account managers today to discuss your lending needs.

To get started today, simply schedule a 15 minute consultation using the button below!

The information contained herein is presented solely for the purposes of discussion and under no circumstances should this be considered an offer to buy or a solicitation of an offer to sell any security. Stock Loan Solutions is not a registered securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. Stock Loan Solutions, its managers or affiliates have not been registered and do not plan to be registered under the Investment Advisers Act of 1940 or any similar state or foreign securities laws. Stock Loan Solutions is not registered under the Investment Company Act of 1940 or under any similar state or international securities laws. Stock Loan Solutions does not offer any form of investment (buy or sell) advice, tax counseling, estate planning, or any other securities or financial advice whatsoever. No statements on this website or any verbal or written statement by any representative shall be construed as such advice. We are neither licensed nor qualified to provide investment advice.

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