The rise and fall of the penny-share offer: A historical sociology of London’s smaller company markets

    Research output: Book/ReportOther report


    This report offers a narrative, ‘historical sociology’ of two markets established
    in London in 1995 in response to a series of rule changes at the London Stock
    Exchange (LSE). The first, the Alternative Investment Market, or AIM, was
    set up by the LSE. It was established as part of LSE chief executive Michael
    Lawrence’s ‘seven-point plan’ for the repositioning of the Exchange as an
    engine for economic growth focused on the UK regions. AIM was also, in part,
    a reactive move allowing the Exchange to deal with competitive threats in
    Europe and at home, particularly growing activity under its own Rule 535.
    It has acted as a proving ground for many smaller companies and plays
    an important role in the political positioning of the LSE. The second, OFEX
    (renamed PLUS in 2004) was privately operated and driven by commercial
    demand. Originally operated as a trading facility, it achieved legal recognition
    as a ‘designated market’ in 2001, and then as a Recognized Investment
    Exchange (RIE) in 2007. As OFEX it coexisted with the LSE and rode the
    dotcom wave; as PLUS it served as a vehicle for a market rebellion against
    the LSE. It struggled to maintain a commitment to its original small company
    constituency and to compete as a trading venue of choice against the
    Exchange. While AIM has flourished, PLUS faltered after the financial crisis of
    2008, and my narrative finishes in 2012 with the sale of the PLUS RIE licence
    to ICAP, now NEX.
    Original languageEnglish
    PublisherUniversity of St Andrews
    Number of pages120
    Publication statusPublished - Oct 2017


    Dive into the research topics of 'The rise and fall of the penny-share offer: A historical sociology of London’s smaller company markets'. Together they form a unique fingerprint.

    Cite this