Mexican Stock Exchange

The Stock Exchange of any part of the world responds to the financial system with the main goal of transferring resources from investors to the participating companies. It gathers people and institutions that receive money and simultaneously form a corporate entity, under a set of legal norms, providing safety to the operations it holds.

Participation in the Stock Exchange is open; the degree of risk undertaken is responsibility of those who participate through different financial instruments. These participants are people representing themselves or their companies and investment societies that have the capital of a set of people who lack the experience for accessing it, but place their capital trusting the knowledge these firms have acquired for operating with the least risk and searching for the greatest yield of those resources.

Although in a certain sense it is a complicated system, in simple terms it can be said that the Stock Exchange creates a game of supply and demand of shares and their value is determined by the trust investors have on a certain firm, represented by the assets and sales it generates. Thus, the trust and growth expectations of the participating companies set the share’s worth.

According to this, the actions of the Stock Exchange have an incidence on the trust generated by companies in a certain economic and political situation.

The movements of this system are also influenced by the official financial decisions, as the Banco de México and the direct regulation of the Comisión Nacional Bancaria y de Valores, an organ of the Secretaría de Hacienda y Crédito Publio through an expressed Law for that activity. The Law of the Comisión Nacional Bancaria y de Valores provides faculties for supervising and regulating it as a financial entity. It is also in charge of the registration of participants: the Registro Nacional de Valores e Intermediarios.

Mexico Stock Exchange (BMV) as a private institution conforms to a series of norms that allow the credibility of its operations, besides other extremely important judicial norms as the Ley de Mercado de Valores, Ley de Sociedades de Inversión and a Code of Ethics for the Mexican Stock Market Community, which has been in charge of establishing moral rules so that all participants carry out their operations under clear values and principles.

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Artículo Producido por el Equipo Editorial Explorando México.
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