How to Invest in the Italian Stock Market

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How to Invest in the Italian Stock Market. In 2007, the Borsa Italiana, Italy's Milan-based primary stock exchange, was acquired by the London Stock Exchange in an unprecedented merger. The Italian stock market is made up of five disparate arms, trading all sorts of securities, from stock in Italian companies to Italian government bonds, stock options and other derivatives.

Things You'll Need

  • Financial adviser (recommended)
  • Capital to invest
  • Licensed stockbroker

Check among the major securities brokerages to see which offers the most favorable combination of account terms and access to the Italian stock market. Choose the brokerage that commands the lowest commission fees while still offering investors the opportunity to invest in the Italian stock market.

Hire a financial adviser. If at all possible, it's best to find one who knows the Italian stock market and has some degree of experience helping people invest in it.

Sit down with your financial adviser and create a personal investment plan. Determine how much money you're willing to commit to investing in the stock market, remembering that while securities trading offers the potential for aggressive returns, it also poses significant risk.

Follow Italian news and current events in addition to the Borsa Italiana index. Before you invest, you should have a solid working knowledge of the Italian economy and know which companies compose the backbone of the Borsa Italiana.

Pick an industry experiencing significant growth or one with solid growth potential if you're looking to invest long term. Identify the various Italian companies operating in that industry, and do your stock market homework on them, just as you would for an American company. If you don't know how to research a stock properly, head to your library or local bookstore for help.

Contact your brokerage firm when you have determined which Italian company you want to invest in. Place your order and wait while it is filled. Your domestic brokerage needs to route the request to an appropriate, licensed Italian stockbroker to complete the transaction. You may experience a delay while your order goes through.

Follow your investment using the Borsa Italiana's stock-quote tool on the Borsa Italiana S.p.A. English website (see Resources below). Sell when you've reached your investment goal or when the going gets too tough for your risk tolerance.

Tips & Warnings

  • The Borsa Italiana S.p.A. is the company charged with the administration of the Italian stock exchange. Check its official English website for up-to-date market information.
  • All stock purchases present some degree of risk to the investor. Cover yourself by making sure you are financially secure before making stock market investments.

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