Keith Hiscock, CEO of Hardman & Co, analyses the much misunderstood, but highly important, issue of stock liquidity, which is particularly important for AIM companies and smaller companies on the Main Market of the London Stock Exchange.
Among the conclusions are that:
- The introduction of MiFID II on 3 January 2018 will have far-reaching market-related consequences;
- Analysis conducted by Hardman and Co indicates that the commission ‘pot’ is set to plunge by up to 75%;
- It will only be generally commercially viable for house brokers – or specialised research houses – to analyse Main Market companies with a market capitalisation under £500m and AIM companies with a market capitalisation under £700m;
- Executives of every quoted company with a capitalisation below £700m must therefore address – as a matter of urgency – how they will respond to the expected sea-change in investment research availability.
For more information, please contact Keith Hiscock, CEO of Hardman and Co.