Traditionally, the private Irish stock market investor has bought the bigger, better-known blue-chip stocks. Along with stakes in stalwarts like AIB, Bank of Ireland or CRH, those who liked to live dangerously might have dabbled in the high-risk exploration sector or, more recently, in up and coming technology stocks.

But for most, the overseas section of their equity portfolio was confined to a handful of leading British blue-chips, well-known names like Marks & Spencer, Cadbury or Abbey National, whose pedigree and products were reassuringly familiar.

However, the launch of the euro on January 1st this year has opened up a whole new world to the private investor who can now buy shares in companies across the 11-member euro bloc without incurring any currency risk. Investors who were previously restricted to the narrow confines of the Irish stock market - with its heavy dependence on financial services companies and lack of investment opportunities in areas like telecommunications or autos - can now invest in a wide range of quality stocks across most areas of European business.

"There are some very good quality companies in Europe that have served the institutional investors and the families that controlled them well," says Mr Tony McCarthy, private client executive with Goodbody Stockbrokers.

As in Ireland, share ownership in continental Europe has not been widespread, confined in the main to the banks, institutions or families that owned the companies.

But more and more people are buying shares, fuelled by factors such as the need to ensure an adequate level of pension provision in ageing societies while privatisations and a wave of expansion have led many firms in continental Europe to become more market-focused.

However, many European firms - including some of the largest players in the euro zone - are barely known among Irish investors and although names like Volkswagen or KLM are recognised, few know much about the share price or earnings performance behind the brand name. Even less is known about the main players running these companies and their track records.

It is not just those that are interested in investing in European stocks who will need to know more about such companies.

As well as providing investment options, these companies and the sectors in which they operate will increasingly become the benchmarks against which Irish companies are judged and key financial measures, such as price/earnings ratios, are assessed. As a result, their performance will be important to those trying to gauge the performance of domestic shares, particularly those in the top league.

While investors have traditionally measured Irish shares against their British peers, comparing the price of shares in the Irish banks to the British sector, pan-European comparisons will now be the order of the day.

These are also the companies that Irish firms will have to compete with for business, while some may even cast a beady eye on Irish firms with a view to merger or takeover.

Additionally, they will be rivals for investment as institutional investors worldwide increasingly view European companies, including Irish firms, in their sectoral context rather than choosing their equity portfolios on a national basis. Thus, CRH - one of the largest building materials companies in the euro zone - will increasingly be viewed alongside competitors like France's Lafarge while Irish Life & Permanent, the company resulting from the merger of the two firms, will be considered alongside similar European life insurers like Dutch company Aegon.

Those keen to diversify into European equities should, however, be aware it remains expensive to invest directly in European shares and, in the short-term at least, it is likely to remain the preserve of those with at least £20,000 to invest.

Typically, an investor purchasing 20,000 AIB shares, for example, would pay 1 per cent in stamp duty and an average of 1 per cent in commission to his broker. By contrast, those buying or selling French or German shares face transaction costs of 4 to 5 per cent.

Investing in Europe also involves hefty custodial charges. Unlike British shares, which can be bought and held by an Irish investor, an individual investing in French equities will have to go through a French custodian who will hold the shares in France. The cost of this will have to be factored into the price. But brokers say that as shareholder culture becomes increasingly important in continental Europe, transaction costs should fall.

Until they do, however, those with smaller sums to invest, say up to £20,000, might be best advised to buy into Europe through the managed funds offered by a wide range of institutions or through a British-quoted investment trust. This way, they will gain access to a wider spread of shares and they can be assured of liquidity.

There are a growing number of funds invested in European shares now on offer in Ireland. Most are invested in shares throughout Europe, including stocks in non-euro countries like Britain, Sweden and Switzerland. But a handful of funds now concentrate exclusively on companies in the 11-member euro zone. These include Hibernian Life's Euro Equity Fund, while AIB's life assurance arm, Ark Life, is also offering a EuroZone Fund.

In addition, new products suited to those who want some type of guarantee with their investments are beginning to appear. Just last week, Ulster Bank launched a two-year euro zone bond, linked to the performance of the Euro Stoxx 50 index.

The bond offers double the index return if the index rises over two years but limits any losses to a half of the fall should the index drop over the same period.