Bolsa de Madrid
Encyclopedia
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
s (the others are located in Barcelona
Barcelona
Barcelona is the second largest city in Spain after Madrid, and the capital of Catalonia, with a population of 1,621,537 within its administrative limits on a land area of...
, Valencia
Valencia (city in Spain)
Valencia or València is the capital and most populous city of the autonomous community of Valencia and the third largest city in Spain, with a population of 809,267 in 2010. It is the 15th-most populous municipality in the European Union...
, and Bilbao
Bilbao
Bilbao ) is a Spanish municipality, capital of the province of Biscay, in the autonomous community of the Basque Country. With a population of 353,187 , it is the largest city of its autonomous community and the tenth largest in Spain...
) that trade shares and convertible bond
Convertible bond
In finance, a convertible note is a type of bond that the holder can convert into shares of common stock in the issuing company or cash of equal value, at an agreed-upon price. It is a hybrid security with debt- and equity-like features...
s and fixed income
Fixed income
Fixed income refers to any type of investment that is not equity, which obligates the borrower/issuer to make payments on a fixed schedule, even if the number of the payments may be variable....
securities, and both government and private-sector debt. Bolsa de Madrid is owned by Bolsas y Mercados Españoles
Bolsas y Mercados Españoles
Bolsas y Mercados Españoles is the operator of all stock Markets and financial systems in Spain. BME has been a listed company since 14 July 2006 and an IBEX 35® constituent since July 2007. In the last few years it has become a reference in the sector in terms of solvency, efficiency and...
.
Structure and Operations
The reorganisation of Spain's financial market under the national umbrella of the Spanish Stock Market includes the bolsas, the derivativeDerivative
In calculus, a branch of mathematics, the derivative is a measure of how a function changes as its input changes. Loosely speaking, a derivative can be thought of as how much one quantity is changing in response to changes in some other quantity; for example, the derivative of the position of a...
s markets, and fixed-income markets. Trading is linked through the electronic Spanish Stock Market Interconnection System (SIBE), which handles more than 90% of transactions; all fixed-income assets are traded through SIBE.
The Madrid Stock Exchange General Index
Madrid Stock Exchange General Index
The Madrid Stock Exchange General Index is a capitalization-weighted stock market index that measures the performance of a selected number of continuous market stocks. It is the principal index for the Bolsa de Madrid and represents the construction, financial services, communications, consumer,...
(IGBM) is the exchange's principle index and represents the construction, financial services, communications, consumer, capital/intermediate goods, energy
Energy
In physics, energy is an indirectly observed quantity. It is often understood as the ability a physical system has to do work on other physical systems...
, and market services sectors. The IBEX-35 Index is a capitalization-weighted index comprising the 35 most liquid Spanish stocks traded in the continuous market, and is Bolsa de Madrid's benchmark. Bolsa de Madrid also offers the FTSE-Latibex Index, a European market for Latin American stocks. The Ibex New Market Index, for emerging companies, was offered from 2000 to 2007.
Settlement is T + 3. Trading on SIBE is conducted from 9 a.m. to 5:30 p.m.; open outcry from 10a.m. to 11:30 a.m., both Monday through Friday
History and Statistics
The Bolsa de Madrid was officially founded in 1831.As required by Spanish law, it is managed and operated by the Sociedad Rectora de la Bolsa de Valores de Madrid S.A., a corporation organized under the laws of the Kingdom of Spain. The membership of the Madrid Stock Exchange consists of 41 major financial institutions and 12 established securities dealers. At December 31, 2001, approximately 1477 domestic and foreign companies had their equity securities listed on the Madrid Stock Exchange. The total market capitalization of the equity securities listed on the Madrid Stock Exchange at May, 2007 was €
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
1,276.26 billion.