The Alternative Investment Market has risen in value by around 40% since last June’s EU referendum. And while that performance is echoed right across the market, there’s evidence that AIM is starting to fight off some of the criticism often levelled against it. Specifically, there are signs of improving company quality, although it’s still the case that AIM is home to a lot of stocks worth avoiding.Over the past 10 years, the number of companies quoted on AIM has fallen from 1,694 to around 967. Critics argue that’s a problem and that falling numbers highlight just how risky the market actually is. But it can also be argued that this decline has been a cleansing experience for AIM. It’s removed a lot of highly speculative, poor quality shares that shouldn’t have been there in the first place.In terms of numbers, analysis of the coming and going of AIM stocks suggests that the decline might be slowing. Accountancy firm UHY Hacker Young says the number of companies leaving AIM dropped by 16% in the 12 months to the end of March, falling from 105 to 88. By contrast, the number of companies joining AIM…
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