French stock exchange
Do you want to invest in the French stock market? Let this be your guide. I am an investor in both the US and Europe, living in Europe now and former brokers and investment adviser.
The purpose of this article is to tell you some of the specifics of French stock market investing. I will look the logistics of investing in the Euronext Paris as well as ideas for investments and how to make money investing in Euronext in Paris.
The French stock market use to be “Paris Bourse” or ” Bourse de Paris”. Since 2000 it has been merged with other European markets and become a pan European stock market based in Paris
Historic location of the French stock exchange - Bourse de Paris which evolved to Euronext
Euronext in Paris
This is the French stock market. I recommend you go to the page and browse around. They have mareket activiety, options, futures, real time quotes, anything you want.
- Trading hours are from 9 a.m. to 5:30 p.m. This is longer than the US markets.
- Settlement of cash funds for trades are t+3. That means three days after your sell a security the cash settles in your account and the same goes with trades.
- With capitalization of over 2 trillion dollars it is the fifth largest stock market in the world.
- Euronext has the relationship with the NYSE which makes it a global market.
- There are talks with the German stock market and others for merger, however, valuation differences are preventing this at this juncture.
- There are 1,400 equities listed
- The trading currency is the Euro
- The main index is the Euronext 100 the other ones include, AEX index, CAC 40 and EURO STOXX 50.
Basically in the French stock exchange you can trade stocks and commodities like any other market. The stocks have a buy and sell bid and ask. There is very little difference in terms of funds, commodities, options, warrants etc between the French stock exchange and the NYSE. The operating ideas are the same. You can track indices, day trade on blue chips like Société Générale, L’Oréal and Air France-KLM or speculate on high-tech stocks.
How to make money on the French stock market
- Find the moving average of the broad index for a 12 month period. If the market is trading above the line, be invested, if below, be out of the market or short.
- Use quantitive reasearch to narrow the selection of French Stocks to those that have real value opportunities. In the USA I recommend a firm like valuengine.com but in France and Europe you have others. However, the idea is similar.
- From this universe choose stocks which you personally know and like as companies. Would you personally buy their products?
- If you can consistently show positive returns, try leverage, either margin or options, preferably long-term options as the time decay is less.
- No guaranties, this is simply my system of investing based on years of experience. I think the quantitative research part if particularly important. Let me know your method for systematic investing or day trading.
French Investment vocabulary
Since this is mostly a language site, here are some French vocabulary words that you might find useful.
- Bid - Offre
- Blue Chip Stocks - Les valeurs sûres
- Bond - Lien
- bonds and real estate - les obligations et l’immobilier
- business - d’affaires
- Capital - Capital
- Capital stock - Capital-actions
- changes in their value - des changements dans leur valeur
- Commodities - Matières premières
- Credit - Crédit
- Currency - Monnaie
- Dividend - Dividende
- Earnings - Gains
- Equities - Actions
- Equity - Équité
- Futures - Avenir
- Income - Revenu
- Insider - Initiés
- Insider dealing/trading - Initiés / commercial
- IPO - IPO
- Issue - Question
- Liabilities - Passif
- Loss - Perte
- Mortgage - Hypothèque
- Mutual fund - fonds communs de placement
- Option - Option
- Par value - Valeur nominale
- Penny stock - Penny stock
- Portfolio - Portefeuille
- Price - Prix
- Profit - Bénéfice
- Ratio - Rapport
- Securities - Titres
- Share - Part
- Share certificate - Certificat d’actions
- Shareholder - Actionnaire
- Speculator - Spéculateur
- Stock index - indice boursier
- Stock option - d’options sur actions
- Stockbroker - Agent de change
- Stockholder - Actionnaire
- Trader - Commerçant
- Yield - Rendement
If you have any questions about stock or currency trading in France or Europe please ask. I think if you are not trading on global exchanges like the French stock exchange you are missing valuable profit opportunities.
1 responses to French stock market
It seems somebody took a dictionary and just wrote the first translation he found..
“lien” is a bond indeed but like in “a bond between people”, it also means link. But it has nothing to do with the financial bond.
“équité” means fairness.
“avenir” means future but like in “the future of our children”, it has nothing to do with the financial product..
And so on..
Bond – obligation
Equity – action
Futures – futures
Insider dealing/trading – délit d’initiés
IPO – introduction en bourse
Issue – émission
Trader – trader, operator en bourse
French stock market
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