NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Blue Chip Fund (the "Fund") is a series portfolio of AIM Equity Funds, Inc. (the "Company"). The
Company is a Maryland corporation registered under the Investment Company Act of 1940, as amended (the
"1940 Act"), as an open-end series management investment company consisting of six diversified portfolios:
AIM Blue Chip Fund, AIM Aggressive Growth Fund, AIM Capital Development Fund, AIM Charter Fund,
AIM Constellation Fund, and AIM Weingarten Fund. The Fund currently offers two different classes of shares:
the Class A shares and the Class B shares. Class B shares commenced sales on October 1, 1996. Class A
shares are sold with a front-end sales charge. Class B shares are sold with a contingent deferred sales charge.
Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or
class. The Fund's investment objective is long-term growth of capital. The assets, liabilities and operations of each
portfolio are accounted for separately. Information presented in these financial statements pertains only to the
Fund.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its
financial statements. The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
A. Security Valuations--A security listed or traded on an exchange is valued at its last price on the exchange
where the security is principally traded, or lacking any sales on a particular day, the security is valued at the mean
between the closing bid and asked prices on that day. Each security traded in the over-the-counter market (but
not including securities reported on the NASDAQ Natio