Over on Wales Home, the Welsh Liberal Democrat Shadow Minister for Economy and Transport, Jenny Randerson has an article arguing for the setting up of a Welsh stock Exchange:
Everyone knows and understands the London Stock Exchange, but this is only really open to a tiny minority of businesses. Underneath that, there are limited options for smaller firms. The Alternative Investment Market (AIM), for example, still requires considerable expense for listing and has been characterised by businesses which made the leap to public listing too soon and have struggled to raise further capital due to the limited number of shares available.
Most big-time investors will follow the bright lights to the FTSE rather than dabble in the smaller businesses on AIM. This is despite the fact that smaller businesses are often more stable for investors.
I believe that a Welsh Stock Exchange has the potential to be far more successful, as it is more likely to tap in to thousands of people who have never played the markets but would love to invest relatively modest amounts in businesses that are close to their homes and communities.
Wales only has one FTSE 100 business and 99% of Welsh businesses are SMEs, many of whom would relish the opportunity to seek out private capital in this way. Most small firms cannot afford the costs associated with listing themselves on even the junior partners to the London Stock Exchange.
A Welsh Stock Exchange could re-create a link between local capital and local businesses, provide huge potential for small and medium sized Welsh firms to raise capital and act as stepping stones to bigger markets.
Pop over and have a read.
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