Located in downtown Managua, Nicaragua’s Stock Exchange, or Bolsa de Valores (BVDN), opened for trading January 31, 1994. It was created by the first post-Sandinista government of Violeta Chamorro, as an attempt to modernize the country’s financial system. It is currently trading at $34.8 million.
Like the banking system the Nicaraguan stock market is regulated by the Superintendencia de Bancos (Superintendency of Banks), but it operates in Nicaragua as a private business.
The Nicaraguan stock market was set up, primarily, as a way to offer alternative finance options to public and private businesses, allowing them to diversify their source of funds by putting them directly in touch with individual financers, and usually at rates lower than those offered by credit banks.
The stock market sells bonds, promissory notes, and certificates for a defined term of maturity at a fixed interest rate. The bond notes are sold on four different markets, in both córdobas and dollars. There is no minimum investment in the Nicaraguan Stock Market. Individual financers have invested amounts ranging from $30 to $10 million. There is no capital gains tax paid when the bond or promissory note is converted to cash.
Speculating and competition in Nicaragua’s stock market is not like it is in the international markets, thus making it less attractive than those markets which deal enormous amounts of money, making it possible to earn large profits.
For additional information about the country’s National Stock Exchange, contact: Bolsa de Valores de Nicaragua, S.A. Tel: (505) 278-3830, Fax: (505) 278-3836.
Web: http:/www.bolsanic.com
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