The Alternative Exchange or Alt-X was brought in by the JSE to replace the Venture Capital Market (VCM) and the Development Capital Market (DCM) and its main purpose is to allow smaller shares to list than are allowed on the Main Board. Most stock markets around the world have some sort of junior exchange to accommodate smaller companies wanting to list. The New York Stock Exchange (NYSE) has the American Stock Exchange or “Amex”. The London Stock Exchange (LSE) has the Alternative Investment Market or AIM. The JSE’s Alt-X contains many interesting shares for private investors to consider. Your first concern when looking at Alt-X shares is whether they have sufficient volume traded on average every day to allow for stop-loss transactions should they be necessary. Many of the shares in the Alt-X are very thinly traded and so are not practical for private investors. The requirements for listing on the Alt-X are a 10% shareholder spread, R2m in share capital and a minimum of at least 100 shareholders. The objective of most Alt-X listed companies is to move to the Main Board of the JSE when they are large enough to qualify. The detailed requirements for an Alt-X listing can be found at:


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