How to Buy Stocks On Euronext
Euronext started in 2000 as a corporation operating stock exchanges in several European countries. The most important is the Paris Bourse, but it also has operations in Portugal, Belgium, the Netherlands and the UK. As a result of a buyout bid by the New York Stock Exchange in 2006, the two merged into NYSE/Euronext—possibly the first intercontinental stock exchange operation. As of the end of 2007 about 3900 companies were listed on NYSE/Euronext including 1744 European firms.
- Difficulty:
- Moderate
Instructions
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1
Read up on stock trading, terminology, and how the financial markets work. You will be putting a considerable sum of money into buying stocks on Euronext and you want to understand what you are doing. You may even want to take a continuing education or online course that will introduce you to basic investment strategies.
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2
Open an account with a brokerage firm. Brokerages fall into two groups, traditional (or full-service) and discount brokerages. The traditional brokerage firms are more expensive, but offer a wider range of services and may provide more research information on individual stocks. A discount brokerage, on the other hand, can save you money on commissions and fees. Which is the best choice really depends on your personal situation.
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3
Research companies before you buy stocks on Euronext or anywhere else. Check out the companies’ earnings, growth, and the market conditions it faces. As you do this, develop an investment strategy. It’s a good idea to buy several different stocks as your portfolio grows to minimize your risks. Some people will focus on stocks within a particular industry so they can keep track of developments in greater depth.
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Purchase stocks on Euronext. For Americans, Euronext is the easiest way to buy stocks in European firms since the merger that created NYSE/Euronext. Your brokerage firm can simply place the order directly without the complications that used to go with international stock transactions.
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Monitor your investments. Check the prices of your stocks frequently. For short-term investments or newly-purchased stock, do this on a daily basis. Longer-term stocks that you’ve held for several months need to be checked regularly, but not every day. Keep abreast of developments affecting the companies whose stock you own, including changes in market conditions, government regulations and especially any changes in management.
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Tips & Warnings
Unless you have considerable experience avoids buying stock options and similar high-risk trading. There is nothing wrong with using some of your investment money to play the options market, but you should view it as speculation (gambling, in other words). It is not a game for the novice investor, though.
