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/]