Buy this safe stock exchange

Not so long ago, listed stock exchanges were booming. But investors have on average lost 70% of their capital on them in the past few years. Theo Casey looks at this fast-evolving sector, and finds that one market in particular now offers a very tempting entry point.

A few years ago, listed stock exchanges were booming. But investors have on average lost some 70% of their capital in the past few years. One market in particular now offers a great entry point. But which is it?

Before diving in, you need to know what you're buying. Markets are very fragmented and keep on evolving as the greybeards of the industry are challenged by younger, faster rivals. This is especially true in Europe for the likes of the 209-year-old London Stock Exchange (LSE). Take Vodafone. From 28 June to 2 July only 31% of the 1.67 billion Vodafone shares that changed hands were traded via its primary market, the LSE. The rest were traded on other exchanges, or in off-exchange, 'over-the-counter' markets (sometimes known as 'dark pools'), according to data provider Fidessa.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Theo Casey

Theo is a former financial writer and editor, having written for reputable titles such as Euromoney Institutional Investor and Redwood Publishing. He has also appeared on-screen with Al Jazeera, BBC and CNBC and on MoneyWeek Theo covered funds, share tips and stockmarkets. He also edited the country's oldest newsletter with Lord Rees-Mogg for four years. Theo now runs his own content marketing agency for financial companies, and he is a seasoned CISI-qualified investment adviser.