La Paz Stock Exchange (BBV)
What Is the La Paz Stock Exchange (BBV)?
The term La Paz Stock Exchange (BBV) alludes to a stock exchange situated in La Paz, Bolivia. The exchange, which is otherwise called Bolsa Boliviana de Valores and the Bolivian Stock Exchange, is the only one in the South American country. Trading started on the exchange in 1989, albeit the idea to lay out it was imagined in 1976. Investors approach equities, bonds, neighborhood commodities, and indexes through the exchange.
Understanding La Paz Stock Exchange (BBV)
Trading started on the La Paz Stock Exchange on Oct. 20, 1989. Yet, the idea was considered to lay out the exchange several years before. As referenced over, that occurred as soon as 1976. Three years later, a nonprofit organization was set up with 71 partners. Referred to locally as Bolsa Boliviana de Valores, the exchange is the only one in the country.
Its mission is to allow the simplicity of financing and investment and to produce value for market participants. It flaunts itself as an accessible and efficient option for market activity. Investors can trade equities, bonds, commodities, and indexes. There are in excess of 100 companies listed on the exchange. Sectors addressed on the BBV traded include (however aren't limited to):
- Agro-industry
- Banks, commerce, financial services, protection
- Electrical
- Industrial
- Oil
- Transport
Trading happens Monday to Friday. The exchange made special provisions to its daily schedule in view of the global 2020 crisis. The trading schedule differs in light of the instrument. The market opens at 7:45 a.m. nearby time for primary markets for fixed income and variable income instruments. The stock auction runs between 11:52 a.m. what's more, 12:22 p.m.
The exchange moved to an electronic system on Feb. 3, 2020, which is called Bolsa Electr\u00f3nica SMART BBV or SMART BBV Electronic Exchange. Traders can likewise execute transactions in the arena, a physical trading floor where negotiation happens in person. This happens during a special trading session. When the session is finished, the method involved with clearing and settlement happens for these transactions.
The stock exchange is regulated and administered by the National Securities Commission, which was laid out in August 1979.
Special Considerations
Trading is focused on gold and commodity transactions. The activity during the 1990s and 2000s increased with the enrolling of different banking, industrial and services companies alongside extra derivative instruments, leading to an increase in volume from years past in which equity investments made up the majority.
One thing to keep as a primary concern is that investing in Bolivia can be to some degree dangerous. The country positions in the 172nd spot on the 2021 Index of Economic Freedom. That is a direct result of how economic development is impeded due to structural issues. Albeit starting a business in the country is easy, the freedom to conduct business remains genuinely low. Foreign investment assumes a lower priority in relation to domestic investment and the country's financial services industry isn't safe to impedance by the state.
Features
- Investors approach equities, bonds, nearby commodities, and indexes through the exchange.
- The La Paz Stock Exchange is Bolivia's just stock exchange.
- Albeit the idea to lay out the exchange was imagined in 1976, trading started in 1989.
- The exchange moved to an electronic platform yet additionally allows negotiation to happen in the arena or the physical trading floor.
- It is otherwise called Bolsa Boliviana de Valores, the Bolivian Stock Exchange, or basically, as the BBV.
