Another instance where German investors, though justifiably considered to be
conservative, were enticed into risk-taking was the Neuer Markt stock exchange
with dozens of IPOs and the promise of high profits.
The market capitalisation of
the Neuer Markt grew from a few billion euros at the end of the 1990s to more
than EUR 200bn, only to collapse in the early 2000s.
This experience also
explains why Germany has a particularly low shareholder rate of well under 10%
of the population – another reflection of the country’s strong aversion to risk.