The Amsterdam Stock Exchange (AEX).AS: What Is It?
The Amsterdam Stock Market is regarded as the world’s oldest continuously operating stock market. It was established in 1602, the same year that the Dutch East India Company (VOC) was founded.
The prominence of European trade and the necessity to provide financiers with a means of profiting from this trade increased the demand for a bank. One of the first companies to compete for exports from the enslaved person and spice trades was the Dutch East India Company. It was a joint stock corporation selling shares to patrons who would fund the expeditions. Investors needed a secure, regulated location to buy and sell shares in these pioneering international businesses.
Many areas and towns had autonomous asset valuation and trade regulatory systems that worked similarly to stock exchanges before the AEX. Still, the AEX was the first recognized stock exchange as we know it today.
The Amsterdam Stock Exchange’s (AEX) Foundations.
The ownership and control of the Amsterdam Stock Exchange have changed several times during its centuries-long existence.
When the Amsterdam Stock Exchange and the European Options Exchange (EOE) joined in 1997, the blue-chip index of the combined market was renamed AEX for “Amsterdam Exchange.”
Euronext Amsterdam was created in September 2000 with the merger of the Amsterdam Stock Exchange with the Brussels Stock Exchange and the Paris Stock Exchange. The biggest cash equity market in Europe is called Euronext. Came under the purview of NYSE Euronext for a while, which ran several exchanges, including the London Stock Exchange, the Life, and NYSE Arca Options. Euronext was separated in 2014 to reestablish its independence. Euronext was the sixth-largest integrated stock exchange by market capitalization as of 2017.
The AEX’s equity indices
Blue-chip AEX, mid-cap AMX, and small-cap AScX are the three broad stock indices offered by Euronext Amsterdam. The AEX, which started in 1983 and consists of more than 20 of the most actively traded Dutch firms on Euronext Amsterdam, is by far the most actively traded and significant index. Multinational corporations like Unilever, ING Group, Philips, and Royal Dutch Shell are among them. It ranks with the BEL 20 of Brussels, the CAC 40 of Paris, and the DAX of Germany as one of Euronext’s top national indexes of the stock market group.
Real-world Case Study
Each quarter, the composition of the AEX index is reviewed; a thorough assessment is undertaken in March, and interim reviews are completed in June, September, and December. The third Friday of each month marks the start of the index’s revisions due to these tests. Before 2008, index updates were only made in March of each year.
The initial index weighting of any firm in the market capitalization-weighted AEX is limited to 15%. The index weights are determined based on the appropriate company closing prices as of March 1. Weightings after adjustment are kept as near as practicable to those from the day before during quarterly evaluations and are not recapped.
- One of the oldest stock exchanges in the world is the Amsterdam Stock Exchange, which was established in 1602.
- 2000 Euronext Amsterdam was created by merging AEX, the Brussels Stock Exchange, and the Paris Stock Exchange.
- Blue-chip AEX, mid-cap AMX, and small-cap AScX are its three broad stock indexes.
- The market is home to over 20 of the most traded Dutch businesses.