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 separate 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 three different classes of shares: Class
A shares, Class B shares and Class C shares. Class A shares are sold with a front-end sales charge. Class B
shares and Class C 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 assets, liabilities and
operations of each portfolio are accounted for separately. The Fund's investment objective is long-term growth of
capital. Information presented in these financial statements pertains only to the Fund.
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. The following is a summary of significant accounting policies
followed by the Fund in the preparation of its financial statements.
A. Security Valuations--A security listed or traded on an exchange (except convertible bonds) 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 Nation