Nasdaq and the London Stock Exchange

I just participated on a conference call with Mike Shaw (Managing Director) from the Nasdaq. He gave a very informative presentation on US and European stock markets. I was interesting to find out that Nasdaq has today more listed companies than the London Stock Exchange (LSE). However, the number of IPOs in 2005 was approximately three times higher for the LSE.

LSE’s AIM list has a lower barrier to entry and is directed at fund raising, where as Nasdaq’s listing requirements are more stringent. Trading volumes in number of shares was about five times higher for the LSE, but the overall trade value was only a half of Nasdaq’s. For mid-sized European companies looking at late stage fund raising the LSE AIM list might be a viable alternative to venture based funding.

Nasdaq still remains the “big exit”. 


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