In the modern society of the 21st century, more and more companies choose to get listed on stocks of foreign countries. A stock exchange is in fact a corporation which reunites buyers, sellers and brokers in one place, for trading actions. In different regions of the world, new strong economically centers appeared and the business operations are becoming more and more globalized.
After opening a Dutch company can get list on stock exchange in the Netherlands only by fulfilling some financial, operational or capital structure related requirements. After listing on stock exchange, the company will have better exposure and increased chances for new investors to trade its stock.
The Dutch stock exchange, the oldest in the world
The oldest stock exchange in the world is the one from Amsterdam, Netherlands, which was established in 1607. The corporate shipping Dutch East India Company („Verenigde Oostindische Compagnie”) required a large amount of money for financing the transportation of goods from the Far East, and therefore the business leaders decided to trade the shares of this big company.
It was for the first time in history of the world when immediately deliverable shares were traded. Investors were impressed by this idea and later, by the end of the 17th century, the Amsterdam Stock Exchange became an important part of the financial sector.
Listing on stock exchanges in the Netherlands – the new Amsterdam Stock Exchange
On 22 September 2000, Amsterdam Stock Exchange merged with the Brussels Stock Exchange and the Paris Stock Exchange. Together, they form Euronext, the first pan-European exchange stock, known in present as NYSE Euronext Amsterdam.
In December 2011, 144 companies were listed on the NYSE Euronext Amsterdam, with a market capitalization of almost 500 billions euro and 181 Investment Funds. The performance of the 25 most actively traded shares listed on Euronext Amsterdam is reflected by AEX (a stock market index). AEX Index is the most widely used indicator of the Dutch economy and stock market.
Rules for stock exchanges in the Netherlands
Starting with September 2006, the rules governing NYSE Euronext Amsterdam were edited in the Act on the Financial Supervision.
To ensure the proper functioning of the markets and the protection of investors, the Dutch Minister of Finance reserves its right to release or revoke any listed company licenses for operating on the regulated market in the Netherlands. Acquiring significant shareholdings in major financial organizations in the Netherlands must also be authorized by the Dutch Minister of Finance.
The regulatory authorities for stock exchanges in the Netherlands and financial supervisors of Dutch market are the Netherlands Authority for the Financial Markets (AFM) and De Nederlandsche Bank (DNB).
For more information about capital market regulation in the Netherlands or other legal services for the Dutch market please contact our law firm in Netherlands.