¿What are the alternative markets?

“Alternative Markets” are stock exchanges, which perform like the traditional capital markets with trading shares. They are called “alternatives”, although they were labelled also as “Growth” markets or “neuer” in german, because are formed by small and midcaps, where the growth factor is also important.

The business models incorporated in this type of markets are represented by a major number of industries, which sometimes have no presence in the big markets. The alternative markets are opened to a greater number of initatives because of those small companies.

For investors, those markets offer an opportunity to complement the stock portfolio with business models with a long path to grow. In an stock exchange environment, buyers and sellers have liquidity to trade their investments. On the other hand, the alternative markets are a window for enterpreneurs to help raising funds for their new projects.

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Exist different alternative stock markets around the world. The oldest one was founded in London, but there are several more through Europe.

We highlight:

  • Mercado Alternativo Bursátil (MAB) in Spain
  • Euronext in Paris, Amsterdam, Brussels, Portugal and Dublin
  • Alternative Investment Market (AIM) in Londres
  • Neuer Markt in Frankfurt

Those markets offer a new place for trading of new shares and the access of small companies to financial resources, to help them to grow. Due to the size of the companies, and on some occasions the novelty of the projects, its services and products, the risks attached are higher. Especially compared to consolidated companies in the bigger markets. In any case, the risks are associated with the specific model of every company incorporated, not with the market.