The Spanish Stock Exchange: A Comprehensive Guide
Origins and Evolution
The Exchange was founded in the Middle Ages in Bruges, at the Wohdelwase house. Shares date back to the early eighteenth century. The first law was published in Paris in 1727. The stock exchange evolved with the Industrial Revolution in the nineteenth century as companies began to interact more frequently.
Key Dates in Spanish Stock Exchange History:
- 1891: Bilbao Stock Exchange
- 1915: Barcelona Stock Exchange
- 1970: Valencia Stock Exchange
- 1983: Madrid Stock Exchange
The approval of Law 24/1988 on Securities marked a significant turning point for the Spanish stock market. This law replaced agents and stockbrokers with shareholders and brokers, and transitioned from a fixed tariff system to a free commission system. It also interconnected the four main Spanish stock exchanges (Bilbao, Barcelona, Valencia, and Madrid) through a computer system called CATS (Computer Trade Assist System), later replaced by SIBE (Information System of the Spanish Stock Exchanges) in 1996. Open outcry markets gradually disappeared in favor of continuous markets. The CNMV (Comisión Nacional del Mercado de Valores) was created to oversee the stock market and protect individual and corporate investors. IBERCLEAR, a clearing and settlement company, was established as the official record of stock market operations.
Administration and Functions
The stock market is a regulated market under the control of regulatory bodies and the Ministry of Economy and Finance, with oversight by the CNMV. Price formation is free, open, and transparent. The stock exchange channels savings into productive investments, aiming to combat inflation. It attracts corporate financing through borrowing, offering companies a potentially cheaper alternative to bank loans, albeit with associated risks.
The stock market acts as a barometer of the economy, although sometimes dissonances occur. It is often sensitive to price and interest rate fluctuations.
Organization
of the Exchange: The Stock is subordinate to the Ministry of Economy and Finance, under the supervision the CNMV. is governed by the Spanish stock exchanges and markets (4 bags are included acting as joint Spanish, is a holding company) exploit the information in an index. CNMV (Commission Nacional del Mercado de Valores) is independent but its composition is designated by the Government. The Council consists of 7 members and the President and Vicepresidente.El President is appointed by the Government on the proposal of Ministerio.Por other hand, there are two ex officio members, the Director General of the Treasury and Deputy Director of the BE. The last three are directly appointed by the Minister of Economy and political tensions generated by composition Hacienda.Esta when making decisions about certain companies (Opa Endesa). Duties: Oversee the financial markets and the proper functioning of the Stock Exchange defending the right to information for shareholders and price transparency. Bag Protection Societies. It consists of the 4 Spanish stock which shareholders can not be any since they have to invest through a broker.These can operate on their own, while agencies can only operate through and others, without intermediaries (dealers vs. brokers). Bolsas y Mercados Españoles.Se is another company whose shareholders are the 4 Spanish Stock Exchanges and traded for 2 years traded. Inside the bag there are two markets: primary and secondary. → Primary: is the market for emissions and the placement of shares or debt of the company. This is where the company gets funding. → Secondary: where assets are traded financial products and ongoing market .- (Main Market) – AMAF, MEFF, alternative stock market indices stock market for SMEs …. How to reflect the situations and values a market. Pick up those points of a certain sector or the most important requirements sources, Spain’s IBEX 35: Are Companies with a high frequency of trading. Collect the listed companies and more value. These companies safe to enter and exit the IBEX inversión.El not always composed of the same companies. Every six months a meeting of experts, under certain conditions, include or exclude companies índice.Este index is important because it gives visibility to companies in the face of inversores.Desventaja: the media are very aware of their actions and This sometimes brings problemas.Ventaja: generate a lot of influence and talk a lot about them (more advertising). Finance companies: There are two financing options: 1. Go to financial institutions (credit request) .2. Go to the Stock Exchange listing: 1 Surround yourself with advisers who directed a plan of action: valuing assets and assigned a price for the shares based on assets and expectations futuras.2 º Submit a document issuing “fact” to the CNMV : A document setting out the characteristics of the issue. We must determine the percentage of shares to be issued for old shares, the volume and number of shares … We must also determine the type of investors we are addressing (institutional investors or individual investors or individuals) There are three ways of financing enterprises – .- interbank financial market through stock .- financial market through debt: bonds or letters (different at the time of issue). How fair is organized from the point of view of financial communication ? 1. Determine who we are going to lead. We leave the choice of the audience they’re going to direct us on the basis of these, give guidance to the information.This is done through a MAP OF PUBLIC establishing a database. This database is updated regularly to ensure that information reaches the people adecuadas.2. Content. How do you get? The contents are achieved one by one talking all about that exhibitors will display and / or presentar.IFEMA has very powerful means for communication: – purchase of booklets published .- informativos.3 spaces. Convene the press conference journalists press.The usually have the privilege of access to the fair before the public In General accredits journalists through prensa.4 meat. During the fair: The work is to meet journalists and trying not to lose interest.