Amsterdam Stock Exchange: How the shares and stocks game started

Before AEX, many regions and towns had independent systems of trade regulations and asset valuation. These systems used to operate much like the stock exchange. But, AEX was the first official stock exchange

FP Trending August 19, 2022 16:17:42 IST
Amsterdam Stock Exchange: How the shares and stocks game started

Amsterdam Stock Exchange. Wikimedia Commons

Founded in the year 1602, Amsterdam Stock Exchange (AEX) is considered to be the oldest still functioning stock exchange in the world. It was created along with the Dutch East India Company (VOC). With the prevalence of European trade and the need to offer financiers a way to profit from the increasing commercial activities, the requirement for a bank grew. Financiers needed a safe and regulated place to buy and sell the shares of early global enterprises. Before AEX, many regions and towns had independent systems of trade regulations and asset valuation. These systems used to operate much like the stock exchange. But, AEX was the first official stock exchange.

Ownership changes:

AEX has gone through some changes in ownership and governance structure over the centuries. The Amsterdam Stock Exchange and the European Options Exchange (EOE) merged in 1997. Its blue-chip index "Amsterdam Exchange" was renamed “AEX”.

Amsterdam Stock Exchange, Brussels Stock Exchange, and the Paris Stock Exchange combined in September 2000 to form Euronext Amsterdam, which is the largest cash equities market in Europe. It fell under the umbrella of NYSE Euronext for some time. In 2014, it became an independent entity once again. Euronext was the sixth largest combined stock exchange by market cap as of 2017.

The three broad equity indexes of Euronext Amsterdam are the mid-cap AMX, blue-chip AEX, small-cap AScX. AEX began in 1983, and remains the most traded and influential index. It consists of over 20 of the most regularly traded Dutch companies. The companies include international businesses like Unilever, Philips, ING Group and Royal Dutch Shell.

Other details:

Alongside Paris's CAC 40, Brussels' BEL 20 and Germany's DAX, Amsterdam Stock Exchange is one of the leading national indices of Euronext stock exchange group. A composition review of the AEX index is done every quarter. A comprehensive review is conducted in March, and the interim reviews are done in June, September, and December. Any changes made to the index as a result of these examinations come in effect on the month’s third Friday. Before 2008, the changes in the index were made only once a year in March.

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