When listening to financial and economic news, the term Mexican Stock Exchange is frequently mentioned, meaning that this or that company is listed on the stock market. But are you clear about what it means and how it works? If not, it’s never too late to find out.
What we know as the Mexican Stock Exchange or BMV Group, is a financial institution made up of a group of companies that together offer services, whose purpose is to facilitate the operation and post-negotiation of the stock market, according to the definition of the site. website of the same organization.
The Mexican Stock Exchange, SAB de CV is a financial entity, which operates by concession of the Ministry of Finance and Public Credit, in accordance with the Securities Market Law.
Likewise, the Mexican Stock Exchange functions as the forum in which the operations of the organized stock market in Mexico are carried out. Its objective is to facilitate transactions with securities and seek to develop the market, promote its expansion and competitiveness, through a set of functions.
Functions of the Mexican Stock Exchange
- It establishes the premises, facilities and mechanisms that allow the relationships and operations between the supply and demand of securities, titles of credit and other documents registered in the National Registry of Securities (RNV). Together with this function, it provides the necessary services to carry out the issuance processes, placement in exchange of the aforementioned securities.
- It is responsible for managing and disseminating information about the securities registered in the Mexican Stock Exchange and those listed in the International Quotation System of the Stock Exchange itself, about its issuers and the operations carried out therein.
- Determines the necessary measures so that the operations carried out by the brokerage houses in the Mexican Stock Exchange, adjust to the provisions that are applicable to them.
- Issues regulations that establish operational and behavioral standards and schemes that promote fair and equitable practices in the securities market, as well as monitor their observance and impose disciplinary and corrective measures for their non-compliance, mandatory for brokerage houses and issuers with securities registered in the Mexican Stock Exchange.
So, how does the Mexican Stock Exchange operate?
In order to fully understand how the Mexican Stock Exchange works, it is necessary to complement its definition as the physical place where the operations carried out by the brokerage houses are carried out and recorded. Investors buy and sell stocks and debt instruments through brokers, called brokerage houses.
The institution explains on its website that it operates a stock exchange, derivative products, an OTC securities and derivatives brokerage company, the central securities depository in Mexico where the custody and settlement of securities is carried out, a clearinghouse for securities and derivatives, as well as a price valuation and risk management services company.
Do you want to finance your business in the Mexican Stock Exchange?
If you are interested in accessing the financing for your company offered by the BMV, you can do so whenever you want, since all companies legally constituted in Mexico and abroad can list their securities without restriction regarding the type of company in which they are incorporated. The only condition is that they meet the applicable requirements according to the type of security they wish to issue.
The process begins when companies have financing needs and look for options with greater benefits than traditional financing sources, as explained by the institution on its website.
Companies that issue securities on the BMV, in the long term, acquire permanence and solidity, as well as many other benefits, among which are:
- Increase in the value of your company
- Financial recognition and quality standards
- Strengthening of the financial structure
- Improvement in the national and international image of the company
- Greater flexibility in the finances of the entrepreneurs and the sources of capitalization
Now that you know what the Mexican Stock Exchange is and how it works, we share with you how to invest in the stock market to earn money.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.
