Stock Investment  » European Stock Exchange Listings

European Stock Exchange Listings

European Stock Exchange Listings

By William Cate

Published July 1999

[http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

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.

An axiom: When buying exceeds selling, the share price goes up....

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/globalvillageinvestmentclubwelcome/]

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/globalvillageinvestmentclubwelcome/]