Bolsa Mexicana de Valores (BMV) is an essential pillar of Mexico’s finance sector and one of Latin America’s premier stock exchanges, providing various financial instruments while contributing to economic development.
Gain more insight into the BMV with this in-depth eligibility market review. Gain knowledge into your company’s ESG performance and compare it to peers.
The Stock Market
The global financial system relies heavily on its stock markets. They offer companies an organized way of raising money through selling shares of ownership in their businesses, while giving investors access to this growth by buying stocks of these enterprises while building wealth over time. Stock markets also serve as barometers of economic health as their movements reflect investor sentiment and expectations for future growth, which may be affected by news events, trends, liquidity concerns, inflation rates or GDP levels as well as other variables.
The stock market is an international network of marketplaces where buyers and sellers of publicly-traded company shares can meet. Stock exchanges like the New York Stock Exchange or Nasdaq serve as the conduits for many trades people make in their investment accounts, while over-the-counter markets allow individual investors to connect without going through an exchange. These markets are subject to stringent regulations and financial disclosure laws in order to guard against fraud or any unfair trading practices. Investors can profit from owning stocks through two main means: dividend payments (which represent a portion of company profits) and capital appreciation, when the value of shares rises over time. Although understanding how the stock market works may seem daunting at first, understanding it can make investing easier and less intimidating.
Trading
Vector Casa de Bolsa’s trading system involves buying and selling stocks (shares) on Mexico Stock Exchange or BMV, the only financial broker headquartered in Latin America offering such trading services, having been recognized by various global organizations as being most innovative brokerage firm. Thanks to their financial strength, leadership team, and focus on innovation; Vector Casa de Bolsa is able to navigate economic challenges while continuing its vital role supporting financial markets.
Valuation
Valuation is the practice of determining the value of shares in a company by considering market price and cash flow data. Valuation should only be seen as one factor when valuing an enterprise; other essential considerations include financial health, management capability and industry factors.
Bolsa Privada de Valores was the inaugural Mexican stock exchange established in 1907. It served as an intermediary for buying and selling shares in mineral companies while charging brokers a fee to facilitate trading. Activity at this exchange declined during periods of revolution and currency stabilization but resumed with oil exploration’s boom.
In 1975, Congress enacted the Securities’ Market Law which led to Bolsa Mexicana taking control of both Monterrey and Guadalajara stock exchange houses to form what we now know as BMV.
At present, BMV Mexico operates as a public corporation with legal personality. Operating under a concession granted by the Secretariat of Finance and Public Credit under Securities’ Market Law. Furthermore, its group comprises derivative exchange MexDer and custody agency Indeval; making it one of Latin America’s second-largest exchanges.