The Nouveau marché (New Market) was a French equity market that was a division of the

Paris Bourse Euronext Paris, formerly known as the Paris Bourse (), is a regulated securities trading venue in France. It is Europe's second largest stock exchange by market capitalization, behind the London Stock Exchange, as of December 2023. As of 2022, th ...

, now called

Euronext Paris Euronext Paris, formerly known as the Paris Bourse (), is a regulated securities trading venue in France. It is Europe's second largest stock exchange by market capitalization, behind the London Stock Exchange, as of December 2023. As of 2022, th ...

History

The Nouveau marché was founded in 1996 to facilitate access to the

financial market A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, raw materials and precious metals, which are known in the financial marke ...

by new start-ups with high growth potential but insufficient financing. Only newly formed companies were allowed access to the Nouveau marché, which was envisioned as a French equivalent to

NASDAQ The Nasdaq Stock Market (; National Association of Securities Dealers Automated Quotations) is an American stock exchange based in New York City. It is the most active stock trading venue in the U.S. by volume, and ranked second on the list ...

in the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

. Created simultaneously with the Nouveau marché was a German counterpart, Neuer Market, and a British counterpart, the

Alternative Investment Market AIM (formerly the Alternative Investment Market) is a sub-market of the London Stock Exchange that was launched on 19 June 1995 as a replacement to the previous Unlisted Securities Market, Unlisted Securities Market (USM) that had been in opera ...

. To be allowed on the Nouveau marché, companies needed a minimum of 1.5 million

euros The euro (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the ...

in capital, among other requirements. Most of the companies listed on the Nouveau marché companies were in the technology sector. A November 2000 article in the ''

Wall Street Journal ''The Wall Street Journal'' (''WSJ''), also referred to simply as the ''Journal,'' is an American newspaper based in New York City. The newspaper provides extensive coverage of news, especially business and finance. It operates on a subscriptio ...

'' stated that the Nouveau marché was “headed into hibernation.” During the first half of the year, there had been 40 initial public offerings, but during the rest of the year only eight IPOs had been added to the market. According to “market watchers,” wrote Mathilde Richter, “Nouveau Marche IPOs are going to become as rare as black truffles.” The problem, she explained, was a “glutted” IPO market and investors who had “tired of unprofitable Internet companies coming to market and disappointing at earnings season.” Richter quoted Francois Dubrule of the Paris-based venture-capital fund Angel Invest as saying that the market was “saturated.” In short, the “rosy days” of the Nouveau marché were apparently over. On February 21, 2005, Euronext Paris created a single regulated market, Eurolist, to replace the Premier Marché, Second Marché, and Nouveau Marché.

References

{{reflist, 2 Financial markets Stock exchanges in Europe Economy of France 1996 establishments in France

History

See also

References