About Amsterdam stock exchange
The Amsterdam Stock Exchange: A Comprehensive Guide to Trading on Euronext Amsterdam
The Amsterdam Stock Exchange, also known as Euronext Amsterdam, is one of the oldest stock exchanges in the world. Founded in 1602 by the Dutch East India Company, it has a rich history and has played a significant role in shaping the global financial landscape.
Today, Euronext Amsterdam is part of Euronext N.V., which operates several other European stock exchanges including Paris, Brussels, Lisbon and Dublin. It is home to some of Europe's largest companies such as Royal Dutch Shell, Unilever and ING Group.
If you're interested in trading on Euronext Amsterdam or simply want to learn more about this historic exchange, then you've come to the right place. In this guide we'll cover everything from its history and structure to how you can start trading on it today.
History of The Amsterdam Stock Exchange
As mentioned earlier, The Amsterdam Stock Exchange was founded by the Dutch East India Company (VOC) in 1602. At that time it was called "Beurs van Hendrick de Keyser" after its location at De Beurs building on Damrak street.
Initially only VOC shares were traded but soon other companies started listing their shares too. By 1700s there were over 200 listed companies making it one of Europe's largest stock exchanges at that time.
In 1801 The Royal Exchange building was built specifically for trading stocks which became a symbol for financial power during that era. However due to World War II bombings most buildings around Dam Square were destroyed including The Royal Exchange building which had been used as a Nazi headquarters during occupation years.
After WWII ended new buildings were constructed including current Beursplein5 where modern-day traders work today.
Structure Of The Amsterdam Stock Exchange
Euronext N.V., headquartered in Paris France owns several European stock exchanges including Euronext Amsterdam. Euronext Amsterdam is regulated by the Dutch Authority for Financial Markets (AFM) and the Dutch Central Bank (DNB).
Euronext Amsterdam operates two markets: The Main Market and The Alternative Investment Market (AIM). The Main Market is where large companies with a market capitalization of over €1 billion are listed. AIM is for smaller companies with a market capitalization of less than €1 billion.
The AEX Index
The AEX index, also known as the Amsterdam Exchange Index, is Euronext Amsterdam's flagship index. It tracks the performance of 25 largest and most actively traded companies listed on Euronext Amsterdam.
The AEX index was launched in 1983 with a base value of 100 points. Today it has grown to become one of Europe's most important indices, reflecting not only the performance of Dutch economy but also global economic trends.
Trading On Euronext Amsterdam
If you're interested in trading on Euronext Amsterdam there are several ways to do so:
1. Through a Broker: You can open an account with a broker who will execute trades on your behalf. There are many online brokers available today that offer access to international stock exchanges including Euronext Amsterdam.
2. Directly through your bank: Some banks offer their clients direct access to international stock exchanges including Euronext Amsterdam.
3. ETFs or Mutual Funds: You can invest in exchange-traded funds (ETFs) or mutual funds that track indices such as AEX which provide exposure to multiple stocks at once rather than buying individual stocks directly.
Conclusion
Euronext Amsterdam has come a long way since its inception in 1602 by VOC shares trading at De Beurs building on Damrak street until today where modern-day traders work at Beursplein5 building using advanced technology platforms for trading activities.
As one of Europe's oldest and largest stock exchanges, it offers investors access to some of the continent's largest and most successful companies. Whether you're a seasoned investor or just starting out, Euronext Amsterdam is definitely worth considering as part of your investment portfolio.