
Stock exchanges and indices
From AEX to Wall Street
When you invest through ABN AMRO, you invest in listed shares. These are shares that are traded on the stock market. But what is a stock market exactly, and how does it differ from an index?
Investing involves risk. You could lose all or part of your initial investment.
Also of interest

What are stock exchanges and indices?
A stock market, or stock exchange, is a place where shares and other financial products are traded. Euronext Amsterdam is a good example.
An index is a type of measuring tool that tracks the performance of a group of shares. The AEX index, for example, shows how the 25 largest and most widely traded companies on the Amsterdam stock exchange are doing. If the AEX goes up, most of these 25 companies will be doing well. If an index undergoes a sharp rise or fall, it’s usually a reflection of what’s going on in the economy.

Follow the stock markets
The best way to decide whether to buy, keep or sell shares is to stay up to date with the news about the stock markets. This will also give you a better idea of which shares or sectors to invest in. In our Investment Outlook, you can read our experts' views on economic developments and how they relate to equities, bonds and commodities. We publish a new update each month.
Frequently asked questions
What are all the different stock markets?
There are numerous stock markets around the world. Examples are Euronext Amsterdam in the Netherlands, the New York Stock Exchange (NYSE) and the NASDAQ in the US and the Tokyo Stock Exchange in Japan.
What indices are there?
In order to give investors a clear view of how shares or groups of shares on a stock market are performing, stock markets have developed indices. AEX is one such index, which includes the 25 companies with the highest market capitalisation. Other Dutch indices are AMX and the AScX. The Dow Jones Industrial Average, S&P500 and NASDAQ100 are indices in the US that you will probably have heard of.
How does a stock exchange work?
A stock exchange is a place where investors can trade securities, and where the price is determined by supply and demand. Securities is a collective term for all the financial products that are traded on a stock exchange, including shares, bonds and funds. Private investors cannot trade on the stock exchange themselves, but are able to buy and sell via a financial body or broker.
There are numerous stock exchanges throughout the world, and Euronext Amsterdam is one of them. Every stock exchange has a select number of companies that are publicly traded on that exchange. Stock exchanges are monitored by the financial authority of the country concerned.
How does an index work?
An index is a type of measuring tool that tracks the performance of a group of shares. The AEX index, for example, shows how the 25 largest and most widely traded companies on the Amsterdam stock exchange are doing. If the AEX goes up, most of these 25 companies will be doing well. If an index undergoes a sharp rise or fall, it’s usually a reflection of what’s going on in the economy.
Investing involves risks
Investing involves risks. You could lose (some of) the money you invested. If you are going to invest, it is important that you are aware of this. Invest with money you can spare. Read more about the risks associated with investments.
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Do you have a question?
Find the answers to frequently asked questions about investing on our service page.