Available data and evidence show significant increases in the trading and investing activity of EU households, sparked by a new wave of young, previously inactive, non-professional investors.
Many EU retail
investors increased their exposure to listed equities and started to
invest via execution-only services (brokerage accounts).
Besides flattening the illiquidity curve during the period of market
turmoil of February-March 2020 thanks to their “contrarian” behaviour,
retail investors offer a large source of long-term funding for the real
economy, which will prove pivotal in the recovery from the
COVID-19-induced economic effects. In fact, in jurisdictions such as the
Netherlands, the majority of households invest themselves (through
execution-only channels), which makes this topic all the more important.
As such, EU capital markets face a significant challenge: to make
investing and trading on capital markets fair, simple, transparent,
easy, and attractive for the new wave of individual, non-professional
investors.
full paper
Better Finance
© Better Finance
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article