What are the alternative markets?
Alternative markets are multilateral trading systems that allow the listing of shares of small and medium enterprises. To facilitate access to this type of companies, these markets offer a more flexible regulation and their entry criteria are different from those applied to traditional stock exchanges.
In Spain there is the Mercado Alternativo Bursátil (MAB) managed by Bolsas y Mercado Españoles (BME) and operating since 2009. Created in the image of the Alternative Investment Market (AIM) in London, which is currently the largest alternative exchange in Europe. This was founded in 1995 and adds more than 1,000 listed low and mid capitalization.
They are also relevant Euronext, formerFrench Alternext, with a presence in mainland cities such as Paris, Amsterdam, Brussels or Dublin, where more than 400 companies are listed in its alternative section. In Germany there is the Neuer Markt in Frankfurt, created in 1997 as a segment of the German stock exchange, similar to the American NASDAQ.
All these markets have in common that they are designed for European technology-based SMEs whose business is in the process of expansion. These smallcaps companies offer great investment opportunities because of their ability to multiply their long-term value. But, at the same time, they carry great risks because of the high probability of failing along their path.