Saturday, July 12, 2014

Shares Investing in the London AIM Market

My older and wiser brother and even wiser late father, were both too clever to consider investing ISA savings for a rainy day or pension  money in the tiny London Alternative Investment Market. However what I was not given by the good lord in innate wisdom seems to have been made up with a little basic street wisdom or at least that is what I suppose/hope.

The old Labour government in the UK in my humble opinion  tended to prefer to spend people's savings for them rather than leave a decent tranche in the owner's own hands. Maybe we were not really to be trusted or maybe socialism requires more central control of personal spending.

 In fairness though, all governments both here and abroad have to tax the people and spend some of their money as otherwise how for example would the frail and vulnerable be protected? Also of course the UK along with many other countries has been spending far more than it earns so taxation is required to repay past debts as well as    caring for the  ongoing needs of the elderly, poor, frail and disadvantaged,   and of course  maintaining and building the infrastructure required for all C21 countries.

However the UK Conservative/Lib Dem coalition government have at least given a tiny piece of more power to the people over the people's own money; firstly by allowing personal/employee/employer saved pension monies to be accessed directly  by the individual pensioner,  secondly by for the first time permitting people to invest their own tax free ISA savings in shares quoted on the tiny London AIM market and thirdly by removing the stamp duty impost on AIM share transactions.

Added to the above I find a small amount of AIM share investing fun if not rewarding. For example in May  I invested some ISA savings into an AIM share (AIM  epic is DUC) at 0.07p per share. Less than 30 minutes later, the shares were temporarily suspended from trading on AIM.

 It appeared that a much larger company is seeking to take DUC over with a view to gaining a listing in the AIM market. Rumour has it that trading in the  the DUC shares will resume again next month sometime and that if the reverse take over rumour proves correct they will trade at nearer 0.7p than 0.07p a share. 

Even if the rumour is wrong the company (DUC)  will  still have some value so the investing exercise will remain interesting and fun if not as I hope tax free and profitable. 

However the key point for any kind of investing but especially on AIM  shares is always "do your own research" and before investing.

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