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Chapter 9: Mexico and the international Stock and Values Market

Capítulo 9 México y el Mercado Bursátil Internacional Luis Doporto Alejandre Abogado Lawyer México

By: Ximena Peinado

The stock market is beneficial in Mexico and in all countries. Stocks and other investment methods have never been as accessible as they are now. Even globally, in Mexico alone you can buy a share for as little as a thousand pesos. The same goes for the international stock market..

Over time, the more companies go public, the more jobs they can offer to the citizens, as we have already proved in our series. 

Stock market in Mexico

There are around 60 major exchanges in the world, which vary in size, trading volume, and market capitalization (the value of their total shares). Compared to the rest of the countries, in Mexico the market is small considering its economic strength. According to the tenth edition of the National Statistical Directory of Economic Units of the Inegi, in Mexico there are 5 million 53 thousand 130 businesses and companies, of which only 46 are listed on the Stock Exchange or participate in the Value Market in other ways. 

International Stock Market

We will talk later about the reasons of why stock market participation in Mexico is low, but firstly, we need to discuss about foreign competition. The world’s 60 most recognized stock exchanges, together, are worth $ 69 trillion. 93% of this value is divided into just three continents: North America, Asia and Europe. However, in this penultimate chapter we will tell you about the eight most important ones, in no specific order and without mentioning the Mexican Stock Exchange.

  1. Hong Kong Stock Exchange (HKEX)*
  1. The Hong Kong Stock Exchange (HKEX)
The Hong Kong Stock Exchange HKEX Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Mexico CEO of PR1ME Capital Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
HKEX, operator of the Hong Kong Stock Exchange . Twitter

It was formally installed in 1891 and was originally called the Hong Kong Stockbrokers Association. In 1914 they gave it the name it currently has: The Hong Kong Stock Exchange.

Most of the companies listed on that exchange are based in Hong Kong and therefore are managed with Hong Kong dollars (HKD). It is the third largest in Asia and has 1955 companies.

  1. The Tokyo Stock Exchange (TSE) – Japan Express Group (JPX)
The Tokyo Stock Exchange TSE Japan Express Group JPX Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Mexico CEO PR1ME Doporto Capital Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
Tokyo Stock Exchange (TSE) – Japan Express Group (JPX), Kakidai
  • TSE-JPX market capitalization: $ 6.22 trillion in March 2018.
  • Companies that list on TSE-JPX: Honda, Toyota, Sony.

It is the largest stock exchange in Japan and was founded in 1878. After World War II, the stock exchange underwent a few changes and is now known as Japan Express Group (JPX) since they joined the Osaka Stock Exchange in 2013 .

There are more than 3,575 companies listed on the Tokyo Stock Exchange and their benchmark is the Nikkei 225

  1. Toronto Stock Exchange (TSX)
The Toronto Stock Exchange TSX Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Mexico CEO PR1ME Doporto Capital Lawyer Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
The Toronto Stock Exchange (TSX) , Twitter
  • TSX market capitalization: $ 2.29 trillion. 
  • Companies listed on TSX: Royal Bank of Canada, Sucor.

Founded in 1852, more than 1,500 companies are listed on it and it is the third largest exchange in North America. In 2009, the TSX merged with the Montreal Stock Exchange, which is why the company is now commonly called TMX. In 2011, this stock exchange tried to trade with the London Stock Exchange, however it was a failure due to a disagreement of opinions among the shareholders. 70% of the companies on this exchange are usually monitored with the S & P / TSX Composite Index.

  1. The Frankfurt Stock Exchange (FWB)
The Frankfurt Stock Exchange FWB Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Mexico CEO PR1ME Doporto Capital Lawyer Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
The Frankfurt Stock Exchange (FWB) , Anton Nikiforov
  • FWB Market Cap: $ 2.22 trillion in March 2018. 
  • Companies listed on FWB: Adidas, BMW, E.ON. 

It was founded in 1585 with the purpose of setting exchange rates, but it is now one of the first exchanges in the world. It was officially established as a German Stock Exchange after World War II.

The companies listed on the Frankfurt stock exchange are mainly based in Germany and in other countries that operate with the euro. The primary index used to monitor the performance of the Frankfurt Stock Exchange is the DAX, which is the selective index of the top 30 companies in the FWB.

  1. Euronext (Netherlands, Portugal, Belgium, France, Ireland and the United Kingdom)
Euronext Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Mexico CEO PR1ME Doporto Capital Lawyer Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
Euronext , Finance Magnates
  • Euronext market capitalization: $ 4.36 trillion
  • Companies that list on Euronext: Axxa, Christian Dior, Renault.

Although Euronext exchange is based in Amsterdam, the Netherlands,  it is a pan-European exchange, as it covers the Netherlands, Portugal, Belgium, France, Ireland and the United Kingdom. It was founded in 2000 in order to represent the entire European economy and, therefore, it operates in euros. Since there are several countries involved in the stock market, there are 1,300 companies listed and 30 stock market indices that can be used to monitor their performance. However, the predominant index for companies listed on the Euronext is the Euronext 100.

  1. The London Stock Exchange (LSE) 
The London Stock Exchange LSE Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Mexico CEO PR1ME Doporto Capital Lawyer Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
The London Stock Exchange (LSE) , Manakin
  • LSE Market Cap: $ 4.38 trillion in March 2018. 
  • Companies listed on LSE: Barclays, BP, GlaxoSmithKline.

The London Stock Exchange was founded in 1801, which makes it one of the oldest in the world. In fact, it was the most important stock exchange in the world until the end of the First World War, when it was dethroned by the NYSE. Today, the London Stock Exchange is considered to be the most relevant in Europe.

The LSE belongs to the London Stock Exchange Group, which was created in 2007 when the LSE merged with the Italian stock exchange (Borsa Italiana). It is the most international stock exchange as it has more than 3,000 companies in 70 different countries. Investors can monitor the performance of the LSE and its market capitalization with the Financial Times Stock Exchange Index 100 Share Index or FTSE 100. Likewise, There are other indices that can be used to track companies listed on the London Stock Exchange, such as the FTSE 250, the FTSE Small Cap, and the FTSE All-Share.

Chapter 9: Mexico and the International Stock Market

Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Lawyer Mexico

By: Ximena Peinado

The stock market is beneficial in Mexico and in all countries. Stocks and other investment methods have never been as accessible as they are now. Even globally, in Mexico alone you can buy a share for as little as a thousand pesos. The same goes for the international stock market.

Accessibility has caused nations to have a strong investment mechanism to obtain national and international resources. And, over time, this action generates jobs and with them, the development of these companies. Development that we have seen during this series of chapters.

In the world, there are around 60 bags that stand out in the world. They vary in size, operating volume and market capitalization (the value of their shares). Compared to the rest of the countries, in Mexico the market is small considering its economic strength.

Stock market in Mexico

According to the tenth edition of the National Statistical Directory of Inegi Economic Units in Mexico, there are 5 million 53 thousand 130 businesses and companies . Of which only 146 are listed on the exchange or participate in it with debts or shares. 

Graph of the tenth edition of the National Statistical Directory of Inegi Economic Units in Mexico Doporto PR1ME Capital Luis Doporto Alejandre Lawyer Lawyer Mexico Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
Graph of the tenth edition of the
National Statistical Directory of Economic Units of the Inegi in Mexico, Eduardo Garza

Later we will go into the reason for the low market share in Mexico . But for now, it is time for us to talk about foreign competition.

International Stock Market

The world’s 60 most recognized stock exchanges , together, are worth $ 69 trillion .

93% of this value is divided into just three continents: North America, Asia and Europe. However, in this penultimate chapter we will tell you about the eight most important ones, in no specific order and without mentioning the Mexican Stock Exchange.

  1. The Hong Kong Stock Exchange (HKEX)
The Hong Kong Stock Exchange HKEX Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Mexico CEO of PR1ME Capital Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
HKEX, operator of the Hong Kong Stock Exchange . Twitter

It was formally installed in 1891 and was originally called the Hong Kong Stockbrokers Association. In 1914 they gave it the name it currently has: The Hong Kong Stock Exchange. 

Most of the companies listed on that exchange are based in Hong Kong and therefore are managed with Hong Kong dollars (HKD). HEKX is the third largest exchange on the Asian stock market and has 1,955 companies. 

  1. The Tokyo Stock Exchange (TSE) – Japan Express Group (JPX)
The Tokyo Stock Exchange TSE Japan Express Group JPX Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Mexico CEO PR1ME Doporto Capital Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
Tokyo Stock Exchange (TSE) – Japan Express Group (JPX), Kakidai
  • TSE-JPX market capitalization: $ 6.22 trillion in March 2018.
  • Companies that list on TSE-JPX: Honda, Toyota, Sony.

It is the largest stock exchange in Japan and was founded in 1878. After World War II, the stock exchange underwent a few changes and is now known as Japan Express Group (JPX) for joining the Osaka Stock Exchange in 2013 . 

There are more than 3,575 companies listed on the Tokyo Stock Exchange and their benchmark is the Nikkei 225. 

  1. Toronto Stock Exchange (TSX)
The Toronto Stock Exchange TSX Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Mexico CEO PR1ME Doporto Capital Lawyer Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
The Toronto Stock Exchange (TSX) , Twitter
  • TSX market capitalization: $ 2.29 trillion. 
  • Companies listed on TSX: Royal Bank of Canada, Sucor.

Founded in 1852, more than 1,500 companies are listed on it and it is the third largest exchange in North America. In 2009, the TSX merged with the Montreal Stock Exchange, which is why the company is now commonly called TMX.

In 2011, the stock exchange tried to negotiate a merger with the London one, however it was a failure due to a disagreement of opinions among the shareholders. 70% of the companies on this exchange are usually monitored with the S & P / TSX Composite Index .

  1. The Frankfurt Stock Exchange (FWB)
The Frankfurt Stock Exchange FWB Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Mexico CEO PR1ME Doporto Capital Lawyer Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
The Frankfurt Stock Exchange (FWB) , Anton Nikiforov
  • FWB Market Cap: $ 2.22 trillion in March 2018. 
  • Companies listed on FWB: Adidas, BMW, E.ON. 

It was founded in 1585 with the purpose of setting exchange rates, but it is now one of the first exchanges in the world. It was officially established as a German Stock Exchange after World War II. 

The companies listed on the Frankfurt stock exchange are mainly based in Germany and in other countries that operate with the euro. The primary index used to monitor the performance of the Frankfurt Stock Exchange is the DAX , which is the selective index of the top 30 companies in the FWB. 

  1. Euronext (Netherlands, Portugal, Belgium, France, Ireland and the United Kingdom)
Euronext Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Mexico CEO PR1ME Doporto Capital Lawyer Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
Euronext , Finance Magnates
  • Euronext market capitalization: $ 4.36 trillion
  • Companies that list on Euronext: Axxa, Christian Dior, Renault.

The Euronext exchange is based in Amsterdam, the Netherlands, but it is a pan-European exchange, as it covers the Netherlands, Portugal, Belgium, France, Ireland and the United Kingdom.

It was founded in 2000 in order to represent the entire European economy and, therefore, it operates in euros. There are 1,300 listed companies and 30 stock indices that can be used to monitor their performance. However, the predominant index for companies listed on the Euronext is the Euronext 100.

  1. The London Stock Exchange (LSE) 
The London Stock Exchange LSE Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Mexico CEO PR1ME Doporto Capital Lawyer Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
The London Stock Exchange (LSE) , Manakin
  • LSE Market Cap: $ 4.38 trillion in March 2018. 
  • Companies listed on LSE: Barclays, BP, GlaxoSmithKline.

The London Stock Exchange was founded in 1801, which makes it one of the oldest in the world. In fact, it was the most important stock exchange until the end of the First World War. It was when the NYSE dethroned her. Today, the London Stock Exchange is considered to be the most relevant in Europe.

The LSE belongs to the London Stock Exchange Group , which was created in 2007 when the LSE merged with the Italian stock exchange ( Borsa Italiana ). It is the most international stock exchange, since it has more than 3,000 companies in 70 different countries.

Investors can monitor the performance of the LSE and its market capitalization with the Financial Times Stock Exchange Index 100 Share Index or FTSE 100 . In addition, there are other indices that can be used to track companies listed on the London Stock Exchange, such as the FTSE 250 , the FTSE Small Cap, and the FTSE All-Share.

7. NASDAQ 

NASDAQ Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Mexico CEO PR1ME Doporto Capital Lawyer Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
NASDAQ , Angus Mordant 
  • NASDAQ Market Cap: $ 10.93 trillion in March 2018. 
  • Companies listed on NASDAQ: Apple, Microsoft, Facebook, and Tesla.

The NASDAQ stock exchange is also located in New York, in the famous Times Square. These acronyms, in English, correspond to the National Association of Securities Dealers Automated Quotations and was founded by a group of local stockbrokers in 1971. This exchange was the first electronic stock exchange and since its inception used trading systems with computers or By phone, Nasdaq also has the most relevant technology stock market capitalization. The index used to measure stock performance is the Nasdaq 100.

8. The New York Stock Exchange (NYSE)

The New York Stock Exchange NYSE Chapter 9 Mexico and the International Stock Market Luis Doporto Alejandre Lawyer Mexico CEO PR1ME Doporto Capital Lawyer Doporto PR1ME Capital Chapter 9: Mexico and the International Stock Market
New York Stock Exchange (NYSE), Spencer Platt
  • NYSE market capitalization: $ 23.12 trillion.
  • NYSE Listed Companies: Exxon Mobil Corp, Citigroup Inc, Pfizer.

The New York Stock Exchange was founded in 1817, but did not operate under the name of NYSE until 1963. Despite the severe financial crises that the United States has had (such as the Great Depression), the NYSE has remained the stock market The world’s largest market capitalization since the end of the First World War. It currently has 2400 listed companies and covers important sectors such as financial, healthcare, consumer goods and energy. Its index is the Dow Jones but they can also be listed on NASDAQ.

Mexico, as you can see, is behind these foreign exchanges. However, the lack of education and stock market culture has caused people to believe that it is a very expensive process, which is why they refuse to be family members. Another reason is companies’ refusal to become completely transparent. It must also be taken into account that the informal market is too strong in our country. 22 percent of the Gross Domestic Product comes from the informal economy and 57 percent of the population works in informal jobs.

The lack of these productive activities not being in the financial system prevents the growth of the Mexican Stock Exchange, and consequently, the development and innovation of its companies along with the country’s economy. The only solution comes hand in hand with the problem itself: a correct financial education for Mexicans.

Keep learning from PR1ME Capital

We have already talked about  how the Mexican financial system works , in addition to telling you everything you  need to know about listing . In addition to telling you   what the origins of the bag are .

We talked about that listing on the stock market can be in many ways, and we share with you  some tools to achieve it . We also show you that  your company can also be successful like Google, Amazon or Facebook.

And we teach a little about the  rights and obligations as an investor or issuer in the Stock Market how to tell you The events and errors that led public companies more problems than benefits

Continue reading our series on financial exchanges so you can learn from  PR1ME Capital .

*Our listing is based on the Admiral Markets and IG opinión and data recovery.

Source: Expansión, Inegi, Bolsa Mexicana de Valores,
IG, Admiral Markets, El Economista

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