Summary
The Mexican stock exchange establishes the premises, facilities and mechanisms that facilitate the relations and operations between the supply and demand of securities, credit titles and other documents registered in the National Securities Registry (RNV), as well as providing the necessary services to carrying out the processes of issuance, placement in exchange of the referred securities; Provide, keep available to the public and make publications about the information related to the securities registered in the Mexican Stock Exchange and those listed in the International Quotation System of the Exchange itself, about its issuers and the operations carried out therein; Establish the necessary measures so that the operations carried out on the Mexican Stock Exchange by brokerage firms are subject to the provisions that are applicable to them;Issue regulations that establish standards and operational and conduct schemes that promote fair and equitable practices in the stock market, as well as monitor their observance and impose disciplinary and corrective measures for non-compliance, mandatory for brokerage houses and issuers with securities registered in the Mexican Stock Exchange.
Stock exchanges around the world are institutions that societies establish for their own benefit. Investors turn to them as an option to try to protect and increase their financial savings, providing the resources that, in turn, allow both companies and governments to finance productive and development projects that generate jobs and wealth..
Stock exchanges are organized markets that contribute to the free, efficient, competitive, equitable and transparent channeling of financing, in accordance with certain rules previously agreed by all market participants.
In this sense, the Mexican Stock Exchange has fostered the development of Mexico, since, together with the institutions of the financial sector, it has contributed to channel savings towards productive investment, a source of growth and employment in the country.
In this case we will not delve into the investment issue and for this I will describe what investment is. Strictly, it is that part of the production that is not intended for immediate consumption but for the production of new Consumer Goods or new Capital goods.
In this sense it is equivalent to the accumulation of physical assets. The purpose of the Investment is to maintain and increase the production of Consumer Goods, for which it is necessary to replace the Capital Stock that is spent in the production process, in addition to increasing said Stock.
Hence the distinction between gross investment and net investment. The first is equal to the total investment; that is, that part of the Product that replaces and increases the existing Capital Stock. The net investment is equal to the gross investment minus the Depreciation, or replacement of the capital spent on production. That is to say, it is equivalent to the net increase in the Capital Stock.
From the point of view of individual economic agents, the accumulation of Wealth is commonly called Investment in any of its forms, such as the acquisition of bonds, stocks, properties, mortgages, etc.
One of the stock market instruments that is governmental are the CETES. Currently, buying these investment instruments implies knowing aspects for and against, explained Isaac Velasco, economic analyst at Banco Ve por Más. There are positive aspects that can encourage investment in Cetes and it is which, being government-backed instruments, are protected against volatility as they are low-risk instruments.
The more risky an investor decides to take, the higher the returns for their money. But the higher the risk, the analyst said, means that the money is exposed to the trends of market volatility.
The analyst recommended that those interested in buying Cetes do so in the short term, up to three months.
The reason for investing in the short term, he explained, is because the yield of the Cetes is linked to the reference rate determined by the Bank of Mexico (Banxico), and at any time the bank can change it either up or down. For this essay we will take three key words which are MONEY, INVESTMENT, CETES.
Abstract
The Mexican Stock Exchange Set the premises, facilities and mechanisms to facilitate relations and operations between supply and demand for securities, debt securities and other documents registered in the National Securities Registry (RNV) and provide the necessary services for achieving the emission processes, placement of these securities exchange; Provide, maintain and make publicly available literature on information relating to the securities listed on the Mexican Stock Exchange and listed in the International System of Exchange Rates of self, their issuers and the operations conducted therein; Establish the necessary measures to ensure that operations are carried out by the Mexican stock brokerage firms, are subject to the provisions applicable to them;Issue rules establishing standards of conduct and operational and schemes to promote just and equitable in the stock market practices and monitor compliance and impose disciplinary and corrective action for non-compliance, mandatory for brokerage firms and issuers with securities registered in the Mexican Stock Exchange.
Stock markets around the world are institutions established companies for their own benefit. A flock of them as an option investors to try to protect and enhance their financial savings, providing the resources, in turn, allow both companies and governments, finance productive and development projects that create jobs and wealth.
Stock exchanges are organized markets that contribute to this channeling funding is made free, efficient, competitive, fair and transparent manner, following certain rules previously agreed by all market participants.
In this sense, the Mexican stock market has encouraged the development of Mexico since, together with financial sector institutions has helped to channel savings into productive investment, source of growth and employment in the country.
In this case not discuss the issue of investment and this investment Strictly describe it, is that part of production that is not intended for immediate consumption but to the production of new consumer goods or new goods Capital.
In this sense it is equivalent to the accumulation of physical assets. The purpose of the investment is to maintain and increase production of Consumer Goods, which is necessary to replenish the Capital Stock that is spent on the production process, and increase said Stock.
Hence the distinction between gross investment and net investment arises. The first is equal to the total investment; ie that part of the product that replenishes and increases the existing Capital Stock. Net investment equals gross investment minus depreciation, or replacement of capital expended in production. That is, it is equal to the net increase in Capital Stock.
From the point of view of individual economic agents, commonly often called Investment Wealth accumulation in any of its forms, such as purchase of bonds, shares, property, mortgages, etc.
One of the government's equity instruments that are currently CETES buy these investment involves knowing pros and against said Isaac Velasco, economic analyst at bank. Positive aspects exist that can encourage investment in Cetes and that, when government-backed instruments are protected against volatility to be low-risk instruments.
The more risk an investor decides to run you will get higher returns for their money. But at higher risk, the analyst said, means that money is exposed to trends in market volatility.
The analyst recommended to those interested in buying Cetes, do it in the short term, to a maximum of three months.
The ratio of short-term investments, he explained, is because the performance of CETES is linked to the benchmark rate which determines the Bank of Mexico (the central bank), and any time the bank can change either up or down. For this test we will take three keywords which are MONEY, INVESTMENT, CETES.
Introduction
Currently there are few people who save and many times that money remains static and by saying static I mean that we do not know how to get our money to work without making a lot of effort. This can be said investment that practically investment is to make our money work for us by allocating our resources to assets that tend to increase in value over time and must take into account the term, our goals and one of the ways to invest is in the Mexican Stock Exchange.
The Mexican Stock Exchange or also known by its acronym BVM is a financial entity that operates by concession from the Ministry of Finance and Public Credit, in accordance with the Securities Market Law.
Derived from the monitoring of world trends and the changes that have occurred in the legislation, the Mexican Stock Exchange concluded the process of demutualization, becoming a company whose shares are capable of being traded on the stock market, carrying out the June 13, 2008 the Initial Public Offering of its shares representing its capital stock.
The Mexican Stock Exchange is the forum in which the operations of the organized securities market in Mexico are carried out, its purpose being to facilitate transactions with securities and seek the development of the market, promote its expansion and competitiveness.
Companies that require resources (money) to finance their operation or expansion projects, can obtain it through the stock market, through the issuance of securities (shares, bonds, commercial paper, etc.) that are made available to investors (placed) and exchanged (bought and sold) on the Mexican Stock Exchange, in a transparent market of free competition and with equal opportunities for all its participants.
To carry out the public offering and placement of the securities, the company goes to a brokerage house that offers them (primary market) to the general investing public in the scope of the Mexican Stock Exchange. In this way, issuers receive the resources corresponding to the securities that were acquired by investors.
Once the securities are placed among investors in the stock market, they can be bought and sold (secondary market) on the Mexican Stock Exchange, through a brokerage house.
The Mexican Stock Exchange is the physical place where the operations of the brokerage houses are carried out and recorded. Investors buy and sell stocks and debt instruments through brokers, called brokerages. It is very important to emphasize that the Mexican Stock Exchange does not buy or sell securities.
But really, how to invest in the stock market? There are many stock instruments but the debt market in this case government is more feasible. But from a very young age we must have the habit of making our money work as university students, the only thing we think about is spending our money without it leading us to any use because we are so bombarded with marketing that sometimes we forget our money in a future, and we think that to invest in the stock market we must have an exorbitant amount but the truth is that every university student can with $ 100 pesos despite investing and how is this? Through the CETES, which are the Federal Treasury Certificates, they are the oldest debt instrument issued by the federal government.
These securities belong to the family of zero coupon bonds, which means that they are traded at a discount (below their nominal value), do not accrue interest over their life and settle their nominal value on the maturity date. It has a nominal value of $ 10 pesos, amortizable in a single installment upon maturity of the title. A term that is usually 28, 91,182 and 364 days, although issues have been made at longer terms, and they have the characteristic of being the most liquid securities on the market. The yield you have is at a discount and the guarantee is the lowest risk securities, since they are backed by the federal government.
Background
In 1850 the first stock titles of mining companies were negotiated, as a result of these events, in 1867 the Regulatory Law of Securities Brokerage was promulgated with the intention of regulating this negotiation activity. In 1886, the Mercantile Exchange of Mexico was established, in 1895 the Stock Market Operations Center, Bolsa de México SA, was inaugurated.
After periods of stock market inactivity caused by economic crises, in 1908 the Mexican Stock Exchange was inaugurated. In 1933, the Stock Market life of modern Mexico began where the Regulatory Law of Stock Exchanges was promulgated and the Mexican Stock Exchange, SA, was established, supervised by the National Securities Commission (today the National Banking and Securities Commission).
In 1975 the Securities Market Law came into force and the Stock Exchange changed its name to the Mexican Stock Market, incorporating the stock exchanges that operated in Guadalajara and Monterrey. For 1995 the BMV introduced the electronic system BMV-SENTRA debt securities, for 1999 all the share negotiations were incorporated into the system, starting this year the capital market of the Stock Exchange operates completely through the electronic trading system BMV -SENTRA capitals
On January 1, 2002, the services company Corporativo Mexicano del Mercado de Valores, SA de CV was constituted for the contracting, administration and control of the personnel of the Stock Exchange and of the other Financial institutions of the Stock Market.
As of June 13, 2008 and to date, the Mexican Stock Exchange (BMV) is an institution organized under the form of a Variable Capital Stock Exchange Company, which has been granted by the Secretary of Finance and Public Credit (SHCP) to perform its functions in the stock market.
The CETES were issued for the first time in January 1978 and since then they have constituted a fundamental pillar in the development of the money market in Mexico. These securities belong to the family of zero coupon bonds, that is, they are marketed at a discount (below their nominal value), they do not accrue interest during their life and they settle their nominal value on the maturity date.
With the sale of CETES, the government acquires liquidity to be able to make the payment of its obligations and to obtain capital in order to carry out the construction and execution of works for the benefit of society. Due to their high liquidity, CETES are in high demand.
The Mexican stock market, as we already know, is the financial entity in which we can invest our money, as I have already mentioned, people do not have the habit of investing if not the human being has the nature of spending and spending to such an extent that he works to pay What you do not have in money yet, so to begin with, you have to know what is called debt in the financial field and it is the amount of money or goods that a person, company or country owes to another and that constitute obligations that are owed pay off at specified terms or also called financial instruments through which a government, company or bank borrows money from the investing public to finance growth, investment or public spending projects with the commitment to repay it within a specified period.
In this case, the topic that is very popular to invest that can be done by anyone without having immense wealth or as the writer Og Mandino says “You don't have to be rich or famous or a genius to fulfill your own destiny, everything all you have to do is use your powers to the best of your ability. " and that can only be done with $ 100 pesos are the CETES.The CETES many of us have heard it but we do not have the information or we do not know what it is but the cetes are government debts that we can give recourse but that this has a benefit for both of us, we earn some interest by investing this can be carry out in short-term terms from 28 days to a year and this has a very low return compared to other investments such as working papers or medium-term promissory notes, but the CETES is an investment in which you do not risk your money can descend and it is not necessary to be checking the newspapers that if the stock market has fallen or listen to the news, see if the graphs fell,This is the easy and safe way to have money but of course it is not an investment that will make you a millionaire the next day since the profit is very little, so the higher the yield, the greater the risk our money will be.
Development
In Mexico there is not much notion of investing for the same reason that we do not know that it exists and when we say that we do not know it is because there is a lack of cultural and financial information since we attended high school, it should teach subjects on how we can be entrepreneurs and be able to be the owners of a company or make money work for us and not that we work for money, which is a big difference, in Mexico we know financial activity and worse, we know the Mexican stock market until we are studying a degree in finance, accounting, administration etc.
In 2013, the newspaper El Universal mentions that the investment made by Mexicans abroad barely accounted for 9,967 million dollars during 2013, the lowest figure in the last four years, according to Banco de México (Banxico).
According to the 2013 Balance of Payments report, the central institute reported that the injection of capital by Mexican businessmen outside the national territory was 56% lower than that recorded in 2012.
It was in that year when a historical maximum of 22 thousand 470 million dollars was reported, while between 2010 and 2011 relevant figures were also observed, since they reached 15 thousand and 12 thousand 600 million dollars, respectively.
Context
The subject of cetes was of great interest to me when I could read on the internet that the ease of investment is in it and it caught my attention just as in past semesters a professor at UNACH mentioned stock exchange instruments and that is why I decided carry out this essay according to the three keywords MONEY, INVESTMENT, CETES without deviating from the main topic of the Mexican Stock Exchange.
conclusion
The Mexican stock exchange provides us with the information to be able to start our money and we cannot say that we do not have the information when in the middle of 2014 technology and the internet make our research too easy there are several stock exchange instruments that are coupled to what we are looking for and term that we want to invest that can be from 28 days to 30 years or more and as for the CETES they do a good to the country since it helps the government in the public debt, since it does not have to borrow from foreigners or banks. On the other hand, it allows small savers to invest.
The possibility of investing in these instruments without intermediaries, without the cost of commissions and above all, being able to learn something from government investments without the need for a lot of money It is a good option if you are not familiar with investments. It is also an excellent place to test what it is to invest but with very small amounts (without risking much), and it is a good option to diversify and have complete control of your investments
Bibliography
- Bank of Mexico. (sf). Retrieved on August 15, 2014, from BANXICO: www.banxico.org.mx Mexican Stock Exchange. (2014). Retrieved on August 15, 2014, from data: www.bmv.com.mxeco-finance. (10 of January 2014). Retrieved on August 15, 2014, from Investment: www.eco-finance.com El universal. (February 26, 2014). Investment in Mexico.
