Bolsa de Valores de Colombia
Encyclopedia
The Bolsa de Valores de Colombia, also known as BVC, is the principal stock exchange
of Colombia
. It was created on July 3, 2001 by the union of three extant stock exchanges in Colombia: Bogotá Stock Exchange (Bolsa de Bogotá), Medellín Stock Exchange (Bolsa de Medellín) and Cali's Western Stock Exchange (Bolsa de Occidente).
The company maintains offices in Bogotá
, Medellín
, Pereira
and Cali
.
It was in mid 1928 when a group of entrepreneurs and government officials from Colombia and abroad organized the promotion of the Bogotá Stock Exchange (Sp. Bolsa de Bogotá) so they could establish the judicial and operational framework of the newly created organization. Former Minister of Economy and jurist Jorge Soto del Corral composed the regulations of the new entity and on November 23 of 1928 the public title 1702 was signed and constituted the Bogota Stock Exchange as a public limited company
. On May 6, 1929 the first board of trustees was elected.
In March 1929 the first 17 trader
s were assigned by Banking Superintendent Gonzalo Cordoba and on April 25 corporations and organizations registered their shares, this included banks, financial service companies and manufacturing and commercial services corporations. Among them Bank of Colombia currently branded as Bancolombia
which is also a NYSE listed
company and Scadta
today known as Avianca
.
Bogotá Stock Exchange remained as Colombia's only stock trading organization until the 1950s when Medellín created its own Stock Exchange. This was particularly useful for the coffee trade since Colombia's coffee market's original birthplace is the Department of Antioquia.
Cali created its stock exchange in the mid-1970s.
The main driving force of this stock exchanges was the economic growth it meant to their participants. However, the policy making of the original stock exchange and Colombia's Bank of the Republic
(Similar to the United States Federal Reserve) was archaic for today's standards.
The evolution of the financial policies of the estate, the fundamental macroeconomic principles, the development of a financial system, the creation of entrepreneurial groups and the evolution of illegal drug trade
and the violence it brought, were factors that decimated the share trading market of Colombia during the 1970s. Despite these problems and the original stock exchange losing its original mission of being a vehicle for the trading of shares, its executives pursued the improving of the credibility of Bolsa de Bogota by concentrating in the operations between potential investors and shareholders.
During 2001 it became necessary to merge the three regional stock exchanges into what it is known today as Bolsa de Valores of Colombia (Stock Exchange of Colombia).
During 2011 is planned to unify the Stocks Markets of Colombia, Chile and Peru in the Market Stocks of the Andes.
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...
of Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
. It was created on July 3, 2001 by the union of three extant stock exchanges in Colombia: Bogotá Stock Exchange (Bolsa de Bogotá), Medellín Stock Exchange (Bolsa de Medellín) and Cali's Western Stock Exchange (Bolsa de Occidente).
The company maintains offices in Bogotá
Bogotá
Bogotá, Distrito Capital , from 1991 to 2000 called Santa Fé de Bogotá, is the capital, and largest city, of Colombia. It is also designated by the national constitution as the capital of the department of Cundinamarca, even though the city of Bogotá now comprises an independent Capital district...
, Medellín
Medellín
Medellín , officially the Municipio de Medellín or Municipality of Medellín, is the second largest city in Colombia. It is in the Aburrá Valley, one of the more northerly of the Andes in South America. It has a population of 2.3 million...
, Pereira
Pereira
Pereira is a common surname in the Portuguese language.It may also refer to:-Places:*Brazil**Pereira Barreto, municipality in São Paulo**Pereiras, municipality in São Paulo*Colombia...
and Cali
Calì
Calì, also written in English as Cali, is an Italian surname, widespread mainly in the Ionian side of Sicily.For the surname Calì is assumed the origin of the Greek word kalos , or from its Sanskrit root kali, "time."The surname refers to:...
.
History
The idea of a stock exchange in Colombia occurred originally in Medellín at the beginning of the 20th century with an initiative in 1901 and then in Bogotá in 1903 with an unsuccessful outcome. It was not only until the late 1920s when the political and socio-economic landscape seemed to give more opportunities of survival.It was in mid 1928 when a group of entrepreneurs and government officials from Colombia and abroad organized the promotion of the Bogotá Stock Exchange (Sp. Bolsa de Bogotá) so they could establish the judicial and operational framework of the newly created organization. Former Minister of Economy and jurist Jorge Soto del Corral composed the regulations of the new entity and on November 23 of 1928 the public title 1702 was signed and constituted the Bogota Stock Exchange as a public limited company
Public limited company
A public limited company is a limited liability company that sells shares to the public in United Kingdom company law, in the Republic of Ireland and Commonwealth jurisdictions....
. On May 6, 1929 the first board of trustees was elected.
In March 1929 the first 17 trader
Trader (finance)
A trader is someone in finance who buys and sells financial instruments such as stocks, bonds, commodities and derivatives. A broker who simply fills buy or sell orders is not a trader, as they are merely executing instructions given to them. According to the Wall Street Journal in 2004, a managing...
s were assigned by Banking Superintendent Gonzalo Cordoba and on April 25 corporations and organizations registered their shares, this included banks, financial service companies and manufacturing and commercial services corporations. Among them Bank of Colombia currently branded as Bancolombia
Bancolombia
Bancolombia is the largest commercial bank in Colombia and one of the largest in Latin America. The bank is headquartered in Medellín, the second largest city in Colombia and was founded in 1945....
which is also a NYSE listed
NYSE Composite
The NYSE Composite is a stock market index covering all common stock listed on the New York Stock Exchange, including American Depositary Receipts, Real Estate Investment Trusts, tracking stocks, and foreign listings...
company and Scadta
SCADTA
The Colombian-German Air Transport Society , or SCADTA, was the world's second airline, and the first airline of the American continent, operating from 1919 until World War II. After the war, SCADTA merged with Colombian regional carrier Colombian Air Service , or SACO. Together, SCADTA and SACO...
today known as Avianca
Avianca
Avianca S.A. is the flag carrier airline of Colombia since December 5, 1919 when it was initially registered under the name SCADTA. It is headquartered in Bogotá, D.C. with its hub at the El Dorado International Airport...
.
Bogotá Stock Exchange remained as Colombia's only stock trading organization until the 1950s when Medellín created its own Stock Exchange. This was particularly useful for the coffee trade since Colombia's coffee market's original birthplace is the Department of Antioquia.
Cali created its stock exchange in the mid-1970s.
The main driving force of this stock exchanges was the economic growth it meant to their participants. However, the policy making of the original stock exchange and Colombia's Bank of the Republic
Bank of the Republic (Colombia)
The Bank of the Republic is the state-run central bank of the Republic of Colombia. Its main functions are detailed by the Congress according to the . One of them is the issuance of the Colombian currency, the peso.-History:...
(Similar to the United States Federal Reserve) was archaic for today's standards.
The evolution of the financial policies of the estate, the fundamental macroeconomic principles, the development of a financial system, the creation of entrepreneurial groups and the evolution of illegal drug trade
Illegal drug trade in Colombia
Illegal drug trade in Colombia refers to the practice of producing and distributing illegal drugs with psychoactive effects in Colombia. Colombia has had four major drug trafficking cartels which eventually created a new social class and influenced several aspects of Colombian culture...
and the violence it brought, were factors that decimated the share trading market of Colombia during the 1970s. Despite these problems and the original stock exchange losing its original mission of being a vehicle for the trading of shares, its executives pursued the improving of the credibility of Bolsa de Bogota by concentrating in the operations between potential investors and shareholders.
During 2001 it became necessary to merge the three regional stock exchanges into what it is known today as Bolsa de Valores of Colombia (Stock Exchange of Colombia).
During 2011 is planned to unify the Stocks Markets of Colombia, Chile and Peru in the Market Stocks of the Andes.
See also
- Economy of ColombiaEconomy of ColombiaColombia has a free market economy with major commercial and investment ties to the United States. Transition from a highly regulated economy has been underway for more than a decade....
- List of stock exchanges
- List of American stock exchanges
- List of Colombian companies