✔️ Information reviewed and updated in April 2024 by Pedro Martínez González
The stock market is one of the most significant economic activities within the context of social development today. Thousands of companies list their shares on different stock exchanges around the world in order to generate financial traffic through different operations with investment instruments.
Around the world there are different stock exchanges that operate in different countries, either as individual exchanges or as joint organizations that bring together both exchanges and companies and shareholders from various nations to expand the stock market.
As we well know, the largest stock exchanges in the world are located in the United States. The ➜ New York Stock Exchange (NYSE) and the NASDAQ They have the highest market capitalization ratios in the world.
However, the stock exchanges in Latin America form a market in which large transactions of money and stocks also take place. It is perhaps a smaller-scale stock market, but large Latin American companies such as Avon, Copec, Televisa, FEMSA, Fonacot, Química Minera de Chile, among others, are listed there.
There are in total more than 600 companies that carry out transactions in the different stock markets of Latin America. In this case there are also both stock exchanges that work individually in their countries, as well as diversified markets that include various Latin American stock exchanges.
➜ The most important stock exchanges in Latin America
Different stock exchanges operate in Latin America. All of them list the shares of various national and international companies. Naturally, there are some stock markets that predominate more than others within the stock exchanges in Latin America.
➜ Santiago Stock Exchange (BCS)
🡆 This is the ☛ main stock exchange in Chile. Its headquarters are in Santiago, the capital of the State. It became a member of the Ibero-American Federation of Exchanges (FIAB) in 1973, and as a member of the World Federation of Exchanges (WFE) in 1991.
This stock exchange uses the General Stock Price Index (IGPA) as its main indicator. This is made up of the prices of the 10 corporations with the highest representation in the country's transactions.
The Santiago Stock Exchange has a market value of almost 3 billion dollars. This was created in 1893, and most of the shares and securities positioned came from minority companies and mining companies. About 330 in total.
➜ Sao Paulo Stock Exchange
🡆 It is also known as ☛ BOVESPA. This It is the largest and best positioned exchange in Latin America, and ranks number eleven in the world. More than 550 companies are listed there, including Petrobras, Avon, Banco do Brasil, Natura, and many others. Its total market capitalization is nearly $ 2 trillion.
The indicator used by BOVESPA is made up of the prices of the 50 most prosperous companies that participate in this exchange. In addition, the trading model used by the Sao Paulo Stock Exchange allows clients to buy and sell various amounts of shares, to hedge, arbitrage costs between different markets, leverage positions, investment variation, and asset allocation. .
➜ Mexican Stock Exchange (BMV)
🡆 This is the only stock exchange operating in that country. ☛ It is in second place within the Latin American stock markets, only surpassed by the Brazilian stock market. One of the most important feats of this stock exchange was that in 2010, an organizational structure was implemented in order to divide the companies into five classifications. Said divisions are summarized in markets and information; technology; deposit, clearing and settlement; corporate services and institutional relations, and promotion and planning.
🡆 This Latin American stock exchange uses the Price and Quotation Index (IPC) as an indicator. It is mainly determined by the global result of the stock market performance of the most representative companies. Samples are taken every two months. Currently there are many companies that are listed on the Mexican Stock Exchange. The main ones are Wal-Mart, Volaris, FEMSA, Grupo Televisa, Vitro, among others.
➜ The Latin American Integrated Market
It is known as ☛ MILA for its acronym. It was created in 2010 and ☛ It includes the Santiago Stock Exchange, the Colombian Stock Exchange, the Lima Stock Exchange and the Mexican Stock Exchange.
🡆 The main purpose of this Latin American stock exchange has been to establish a unique heritage among the four countries that make up the Pacific Alliance. This stock exchange uses the currencies of the four nations that are part of it.
The start of operations of the Latin American Integrated Market occurred on May 30, 2011. The integration of Mexico as a full member of this stock market integration did not take place until December 2014.
The creation of the Latin American Integrated Market is the result of different agreements made by the stock exchanges of the three founding countries, as well as companies and corporations associated with said stock markets.
The main objective of the merger of these four stock exchanges was to improve the stock and capital market through the expansion of the supply of securities, issuers and financial sources as a result of the same incorporation of the stock markets of the four nations involved. ☛ It is a measure that seeks to bet on an optimal economic development of the four member countries and all the affiliated corporations.
🡆 Despite the fact that many of the share prices have fallen due to the COVID-19 pandemic, operations in the different Latin American stock markets continue to be fairly continuous.
It could be said that the stock exchanges in Latin America make up a market of a smaller size compared to other stock markets located in other parts of the world. However, it is impossible to deny that the shareholder market in Latin America has served as an engine of economic impulse of great impact in these nations. 🡆 Large and medium-sized companies have seen large inflows of money and increased financial performance of their operations thanks to transactions on the stock market.
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