What is the Amsterdam Stock Exchange (AEX) .AS
Founded in the year 1602 with the founding of the Dutch East India Company (VOC), the Amsterdam Stock Exchange is considered the oldest stock exchange that is still functioning in the world. This is because the Dutch East India Company was one of the first companies (then called joint-stock companies) to offer shareholder stock that they could buy and sell, and so needed a regulated market with which to conduct such trading. Prior to the AEX, many regions and towns had their own systems of asset trade regulation that operated much like stock exchanges, but the AEX was the first official stock exchange as we know it.
The Basics of the Amsterdam Stock Exchange (AEX) .AS
Over its centuries-long history, the Amsterdam stock exchange has gone through several ownership changes and governance structures.
Looking to recent history, in 1997 the Amsterdam Stock Exchange and the European Options Exchange (EOE) merged, and its blue chip index was renamed AEX, for "Amsterdam EXchange."
In September, 2000, the Amsterdam Stock Exchange merged with the Brussels Stock Exchange and the Paris Stock Exchange to form Euronext Amsterdam. Euronext is Europe's largest cash equities market and for a period of time fell under the umbrella of NYSE Euronext, which operated several exchanges, including the New York Stock Exchange, the Liffe in London, and NYSE Arca Options. In 2014, Euronext was spun off to become an independent entity once again. As of 2017, Euronext was the sixth largest combined stock exchange by market cap.
Real World Example of the AEX
Euronext Amsterdam's three broad equity indexes are the blue-chip AEX, mid-cap AMX, and small-cap AScX. By far, the most traded and influential index is the AEX, which began in 1983 and is is composed of the 25 most frequently traded Dutch companies that trade on Euronext Amsterdam - including international companies such as Univlever, ING Group, Philips, nd Yoral Dutch Shell. It is one of the main national indices of the stock exchange group Euronext alongside Brussels' BEL 20, Paris's CAC 40 and Germany's DAX.
The composition of the AEX index is reviewed quarterly each year, with a comprehensive review conducted in March and interim reviews in June, September, and December. Any changes made to the index as a result of the reviews take effect on the third Friday of the month. Prior to 2008, index changes were made only once annually in March.
The AEX is a market capitalization-weighted index, with initial index weightings of any one company capped at 15%. The index weights are calculated with respect to the closing prices of the relevant companies on March 1. At the quarterly reviews, weightings after adjustment are left as close as possible to those of the previous day and are not re-capped.