OBJECTIVE OF THE STOCK EXCHANGE
In Colombia the stock exchange is a company, shareholders, Board of Directors, Manager (which in President is called and is the Dr Juan Pablo Cordoba) and internal administration.
Has by object provide the service of put in contact to companies that need capital, (demanding of money) with people and companies that have of it, (providers of money) for them first it obtain of them second and these is it delivered in Exchange for receive a retribution represented in it part that les corresponds of them utilities of the company.
Demanding money companies get it suppliers selling them shares representing participation of suppliers purchasers of money on the property of them.
So that a company can sell on the stock exchange shares issued - so you call "station", it must be registered on the stock exchange, which achieved after an exhaustive analysis of the solvency and seriousness that she makes the company.
In practical terms, when a company needs money, for example to finance its expansion plans, it issues shares, i.e. documents of title of property, offering through the stock exchange. Who buy these shares, i.e. owned by a certain percentage, shall be entitled to the same percentage of the utilities of this.
A company's shares offered on the stock can be purchased by a natural person, or by another company.
The utilities that the buyer of shares receives - dividends are called - related to the amount of money invested in acquiring them, generate you some profitability, which can compare with receiving if, for example, invests that money in a PDT from a bank.
A typical example is what has just happened with the "issuance" of actions and implementation for sale of the Group Suramericana, Avianca - Taca, Ecopetrol and other companies. They issued shares and many people and companies acquired them becoming partners or shareholders, and as such, will receive part of the profits which they are suited.
THE MECHANISM OF OPERATION OF THE STOCK MARKET
The negotiation of shares between the seller (plaintiff's money) and the buyer (bidder's money) only can be done through an intermediary company generically called "broker", who must be enrolled in this, for whose registration is subjected to a very detailed scrutiny by the bag. I.e., the seller and the buyer of shares not can negotiate them directly.
The seller selects to a "runner" and you entrusted that offer them actions and the buyer also selects to a "runner" to offer buy them.
The intermediary or runner, that is a society, incurred in expenses to develop your management commercial. Those expenses the covers with income, that are constituted by a Commission that charged to who negotiated them actions.
The bag, which as explained is a company also incurs costs, covering with commissions charged to the runners.
Those costs correspond to them facilities and to the service of registration and administration of the transactions, today completely systematized, that lends to them runners.
The commissions are a proportion of the value of negotiation.
THE PRIMARY AND SECONDARY MARKETS
When a "CA" company issues shares and another company or individual acquire them, said that negotiation was made in the 'primary market'
However in the bag can be also the negotiation between two natural or legal persons, of actions that they have a for buying a company that issued them.
To send us to the example mentioned above, a person X may have bought Avianca - Taca actions when it issued them but now you need money - liquidity - and then also through a broker, offers them in the bag and you can negotiate them with another runner to whom a client and has entrusted it to acquire shares that will allow you to receive profits from the company that issued them.
When between seller and buyer is trading through of their respective runners actions that already have been issued and negotiated previously, is says that this new negotiation is made in the "market secondary"
SHARES OF FOREIGN COMPANIES
Today it is possible that a natural person or legal Colombian buy shares of companies from other countries, like for example Chile or Peru, who are registered on the stock exchange in its country, or that as a result a society or Peruvian natural person or a Chilean bought shares of Colombian companies.
For this negotiation to be possible, must be a formal agreement between the bags of the respective countries, backed in each by the authority which supervises financial operations. In our case, that authority is the Financial Superintendent.
NEGOTIATION OF BONDS
In the stock market is possible, similarly traded stock, negotiate debt bonds issued by companies or the Government.
It is important to remember that bonds are a mechanism used by the companies, that "emit" for raising capital, but which do not represent ownership of these but they are a kind of "receipt" issued by the company whom lends you money, which pays a fixed interest rate.
Her issuance of bonds by a company must be authorized by the Financial Superintendent.
It is something that, for example in economic news from television, respondents are referred to when asked because it went up or down the price of a stock.
THE "INDEX" BAG
The television news report every day on the value of the "index" the Colombia stock exchange and exchanges of other countries, indices that have specific names, such as the NASDAQ.
The indices are simply a numerical indicator, which is calculated in a way that is not the case explain here, representing the proportion that came up or under the weighted average of the prices of the shares traded on that stock exchange.
If the index falls, it is because although the price of some actions had raised, globally and as a whole, the decline in prices is higher, and conversely if the index rises is because although there are low in price in some actions, globally and as a whole the price increase is higher.