European Stock Market; Its History, Progress And Performance.

European stock market is a public entity in Europe where shares of a company are traded at an agreed price. The stocks or the shares are listed and then traded on stock exchanges which are owned by brokers. Such brokers have specialized in selling and buying shares from a listing of stock and securities on behalf of the companies. Participants in this market include insurance companies, banks, mutual funds and individual retail investors.

European Stock Market And it’s Importance

The European stock market was started with the purpose of facilitating the exchange of securities between sellers and buyers in Europe. In a way, this provided a marketplace where real or virtual. The exchanges facilitate price discovery by providing a real time trading on all the listed securities. The exchanges are either are physical locations or virtual kind. The physical locations involve carrying out transactions on a trading floor through the open outcry method. The virtual kind exchange is composed of a network of computers where exchange is done electronically through traders. A potential buyer bids a specific price for stock while the potential seller asks for a specific price for the stock. If the bid and the price match, a sale takes pace.

European Stock Market

A few decades ago especially after the Second World War, buyers and sellers on The European stock market were mainly individual investors like wealthy businessmen. However, this has changed over time because institutional investors have become the major players in this market. This change has caused some improvements in the operations of the market such as reducing the fees favoring the ‘small’ investor.

The European stock market is determined to provide a considerable amount of useful information all over Europe daily. This has increased the demand of this information by all key players in the market including the small investors. For efficiency, the news analysis consists of the recording, tracking, analysis and interpretation the flux. The analysis include the performance all companies over Europe no matter its popularity. The information is also posted in the internet which is now a medium of choice for several stock market watchers in Europe. It is preferred more because it is capable of providing detailed the up-to the-minute reports on trading.

The European stock market has now scaled into heights despite the longest recession in Europe and the highest levels of unemployment. This simply shows that the stock market growth has very little correlation with the economic growth. Many investors are now trading on shares instead of fundamentals as it is tracking the most. Only Greece’s new political crisis has knocked the local stocks down.

Last week on Friday, the European stock market attempted a rebound which ran out of gas as the day went on. The major European stock indices began to fade although the bargain hunters had accomplished their mission during the first half of the session. This has made the Euro group finance ministers to meet in Luxembourg in order to agree upon a protocol for rescuing or winding down insolvent banks and create a banking union.

Everyone is now positive on the European shares. Many investors are now buying them since they are still underweight now. They are cheap in terms of value but it is going to increase within the next few months. Make a wise decision now, buy some shares now and for real, you will enjoy huge profits within the next few months.