Investment & Financial Articles
Title: European Stock Exchange Listings
Author: William Cate
Article:
European Stock Exchange Listings By William Cate Published July
1999 [http://home.earthlink.net/~beowulfinvestments/]
[http://home.earthlink.net/~beowulfinvestments/globalvillageinves
tmentclubwelcome/]
An axiom: When buying exceeds selling, the share price goes up.
When selling exceeds buying, the share price goes down. The
reasons for the buying or selling are secondary to the act of
buying or selling.
The goal of your stock support plan is to encourage buying and
discourage selling. One tactic in your battle for a strong share
price is to list your company's shares on a European Stock
Exchange.
Europeans are investors, not speculators. They'll carefully
review the fundamentals of your company. I advise clients to
sell their product or service in Europe. It gives your company
credibility with potential European investors. As a rule,
Europeans are more interested in the steak than the sizzle.
Does your company trade on the New York Stock Exchange (NYSE)?
You should list it on the International (London) Stock Exchange.
Does your company trade on the Over-the-Counter Bulletin Board
(OTCBB)? You should carefully select one of Europe's
risk-capital Stock Exchanges. Here are ten issues you should
consider in selecting your European Stock Exchange. 1. Can you
file in English? 2. Will the Exchange accept your SEC filings?
3. Where are the small capital investors? American companies
consistently miss a primary source of small capital investors
allied to each European Stock Exchange. 4. What will an Investor
Relations program cost? 5. As your company grows, can you use
your European OTC listing to list your shares on a stronger
European or American Stock Exchange? 6. How do you arrange a
European listing? The financial culture of each European Stock
Exchange is different. There's an approved road to list your
company. You must know it to succeed. 7. What does it cost to
list? How does that cost compare to listing on Nasdaq or
complying with SEC filing requirements? 8. Who can you trust? 9.
How much of your stock will trade annually on this Stock
Exchange? 10. How long will it take for your company to start
trading?
Nasdaq is moving to consolidate U. S. Stock Exchanges, excepting
the NYSE. The German (Frankfurt) Stock Exchange has a similar
plan for Europe. Eventually, these two acquisition programs will
merge. Currently it's faster, cheaper and easier to list an
American OTCBB company in Europe than on Nasdaq. As European
Stock Exchange consolidation progresses, this may no longer be
true. If your shares trade in the States, you should think
Europe in 1999.
To contact the author: Visit the Beowulf Investments website:
[http://home.earthlink.net/~beowulfinvestments/] Or, visit the
Global Village Investment Club Website:
[http://home.earthlink.net/~beowulfinvestments/globalvillageinves
tmentclubwelcome/]
About the author:
He has been the Managing Director of Beowulf Investments
[http://home.earthlink.net/~beowulfinvestments/] since 1981 and
is the Executive Director of the Global Village Investment Club
[http://home.earthlink.net/~beowulfinvestments/globalvillageinves
tmentclubwelcome/]
|