AEX – 25

Trade AEX – 25

This stands for the Amsterdam Stock Exchange, and is a stock market composed of Dutch companies that trade on Euronext Amsterdam, which is formally known as the Amsterdam Stock Exchange. The number in the title comes from the fact that the index is composed of a maximum of 25 of the most actively traded securities on the exchange. It was started in 1983, and is one of the main national indices of the pan-European stock exchange group Euronext, alongside Brussels’ BEL20, Paris’s CAC 40 and Lisbon’s PSI-20.

The composition of the index is now reviewed four times a year, with an annual review in March, and then interim reviews in June, September and December. If any changes are needed after these reviews, they take place on the third Friday of the month. Before 2011, the reviews were only made twice a year, March and September, and before 2008, reviews were made just once a year in March. During the main March review, the 23 companies listed on the Euronext Amsterdam’s regulated market with the highest share turnover (in Euros) are admitted on the index. At the interim reviews, no changes are to be made, unless the index has seen one or more constituents removed, or a non-constituent possesses a share turnover ranked 15th or higher overall over the previous 12 months. If there are any vacancies to be filled, the highest-ranking non-AEX companies are then selected to join the index.

On September 9th 2008, the index closed almost 9% as it experienced its second largest one day loss ever. The decade before had been very troubling, and it was the worst performing stock index in the world except for the OMX Iceland 15. Ironically, the years preceding this were a lot better compared to the rest of the world.

Trade AFX