Madrid Stock Exchange
Because of the constant aggressive policy of the Spanish Empire, most of its public expenditures were directed primarily to finance the army and the navy. The economic development of the country itself received little appropriation, which somewhat affected Spain's lagging behind the other Western powers.
All of these factors had a direct impact on the late emergence and formation of the stock market in the Iberian state. Prior to that, Spain had only a culture of fairs, and the issuance by the authorities of the so-called "royal rights", which in their mechanism resembled modern government bonds.
Madrid Stock Exchange (Bolsa de Comercio de Madrid) was founded by order of King Fernando VII in 1831. The first issuers to place their securities here were railroad companies and mining companies. From 1854 official bulletins began to be issued.
Development of the Madrid Stock Exchange
For the development of Madrid Stock Exchange The withdrawal at the end of the 19th century of the largest Spanish colonies from the empire: Cuba, Puerto Rico and the Philippines, which was reflected in a drop in 20% quotations, had a negative impact. By this time, however, the national government had concentrated on its own economic development, and companies from former colonial possessions began to place their shares in Spanish-speaking countries in order to access international capital. Madrid Stock Exchange.
The momentum set in helped Bolsa de Madrid The institution survived World War I and the Great Depression of 1929 almost without adverse consequences, only to be temporarily closed under the regime of General Franco in 1936.
Since the 1950s, the Madrid Stock Exchange has been steadily gaining momentum, thanks to the opening of Spain to foreign capital, the unrelenting flow of tourists into the country and the improvement of the management of the bidding system. Additional sites were opened for companies from Latin America and representatives of fast-growing businesses. The Bolsa de Madrid currently has a market capitalization of $1.171 trillion and a trading volume of $1.16 trillion.
Madrid Stock Exchange Index
At Madrid Stock Exchange two basic indices are compiled: IGBM и IBEX-35. The first reflects the state of companies representing six sectors: energy, construction, real estate, banks, consumer goods production and IT-technology. IBEX-35 is calculated on the basis of data from the 35 largest issuers exchanges.