Prague Stock Exchange (PSE)
What Is the Prague Stock Exchange (PSE)?
The Prague Stock Exchange is the most established and most prominent stock exchange in the Czech Republic. The Prague Stock Exchange is situated in the city of Prague and was returned in 1993 following an almost 50-year break because of World War II during the rule of the communist government of Czechoslovakia from 1948.
Understanding the Prague Stock Exchange
The Prague Stock Exchange was founded in 1871, when Prague and the modern-day Czech Republic were constituents of the Austro-Hungarian Empire. The Prague exchange was at initial a key institution in the global trade of sugar, and many sugar-related commodities like molasses that had major operations in or around the city of Prague. The exchange developed throughout the long term, notwithstanding, to at last deal generally in stocks of public companies, and by World War I, the Prague Stock Exchange was a setting exclusively for the trading of stocks.
After the fall of the Berlin Wall and the collapse of socialist systems, financial capitalism immediately spread to places like Prague. The Prague Stock Exchange was before long returned, and the main post-socialist trades were made on April sixth, 1993. The exchange was an important vehicle for privatizing the in excess of 1,000 state-owned companies that moved to private hands in the years following the fall of the Czech socialist government.
Today, the Prague Stock Exchange records many the Czech Republic's most important companies, and the overall performance of companies listed on the exchange can be estimated with the PX index, its official stock index. Skoda Automotive, which brings in close to $20 billion in annual revenue, is listed on the Prague Stock exchange, alongside other major Czech companies like Unipetrol and the CEZ group. Many notable financial services firms are individuals from the Prague Stock Exchange, as Soci\u00e9t\u00e9 G\u00e9n\u00e9rale.
The Prague Stock Exchange and the Modern Economy
The Prague Stock Exchange is an important institution for the modern Czech economy, as the Czech Republic is home to numerous capital-intensive industries like high tech engineering, automotive manufacturing, steel production, and pharmaceuticals. Such industries require a ton of capital to flourish, and the Prague Stock Exchange fills in as a means for Czech companies to find investors to finance these ventures.
The exchange is a privately owned joint-stock company, with CEE Stock Exchange Group owning 93 percent. CEE Stock Exchange Group is a holding company that possesses and controls both the Prague Stock Exchange and the Vienna Stock Exchange in Austria. However the holding company is the strategic owner and financial supporter of the two exchanges, each exchange is worked separately by in-house management.
Shares on the Prague exchange are denominated in Czeck koruna (CZK), the official currency of the Czech Reupublic. The Czech Republic is part of the European Union (EU) as legally will undoubtedly embrace the common euro currency ultimately, albeit this doesn't have all the earmarks of being imminent.
Highlights
- The Prague Stock Exchange is the head stock exchange for the Czech Republic, listing more than 1,000 of the nation's publicly traded shares.
- The Prague exchange was covered in 1948, following WWII, and didn't re-open until the year 1993.
- The exchange was found in 1871 where it was initially charged as a commodities exchange.
