Capital Market

Capital Desk

The capital market refers to a type of economic sector in which financing channels are traded at different terms.   This market serves to channel savings from persons and entities to others for financing their various projects.

Types of users: This market serves as a means to transmit funding from less productive to more productive sectors. Today, capital market trading can be accessed from almost anywhere through electronic platforms, which in some cases are open to the general public.

Operations that the Capital Bureau can perform:

Placements.

IPOs. 

On the primary markets, investors can acquire new stocks or bonds issued under a contract between the financing party (buyer) and financed party (seller).  Companies and governments can both participate in this market.

Repurchase Fund Management. 

Highly renowned company have trusted in the experience and professionalism of our traders to manage their stock repurchase funds in order to keep their own shares liquid in keeping with the outlook for the stock and the natural flow of supply and demand.

Market Makers

A market maker is a member of the Mexican Stock Exchange authorized to promote stock liquidity, particularly at times of volatility like the present.  This is a practice carried out on stock exchanges around the world to make trading more efficient. A market maker establishes reference prices for certain securities or groups of securities during the trading session, and permanently maintains buy and sell bids for minimum amounts of securities and with prices within the maximum spread established by the BMV.  This model helps temper price swings, moderating both upward and downward movement in stock quotations.  It does not alter conditions of supply and demand in the market–its purpose is to provide liquidity and sustain trading activity.

Tactical Transactions:

Trading: These assets can change hand constantly on secondary markets, depending on the prices set by the free interplay of supply and demand.

Platforms: Bloomberg: There are numerous examples of these systems, which are sustained by entities like investment banks government agencies, etc. From a physical standpoint, these systems are hosted at various points around the globe, although they tend to be concentrated in financial centers like London, New York and Hong Kong. Through Bloomberg, our clients have access to countless investment options.

Debentures: Direct Trading in Debentures through Sentra: Debentures are credit certificates that represent the individual participation of their holders in a collective credit to a corporation.

Foreign Shares:

Through ETFs:  These initials stand for Exchange Traded Funds, which can be defined as a hybrid combining features of traditional mutual funds with stocks.  Like traditional mutual funds, they are made up of a basket of securities; but they are traded in the same way as stocks– listed throughout the trading session–and are dealt with in the same way for tax purposes.

Though the SIC:  the International Quotations System is a tool designed for listing and trading, within the environment of the Mexican Stock Exchange, securities that have not been offered publicly in Mexico, and are listed on foreign stock markets recognized by the CNBV.

Directly on Foreign Exchanges: For example, the Dow Jones Industrial Average is the benchmark stock market index of the New York Stock Exchange.  It tracks the performance of that markets’ 30 largest industrial shares (in terms of market capitalization).

Trading in ADRs:

Arbitrage: An ADR is a tradable certificate that represents ownership of a certain number of shares in a non-US firm. ADRs are issued and controlled by a depository bank (in the United States) and represent shares deposited in another bank (Mexican). They are used to facilitate trading in this type of shares on US markets, and expedite the transfer of shares outside the US. ADRs are denominated in dollars, traded on US markets, and leally considered a US security.

Structuring of Long-Term Strategies:

Custom-Tailored: Our highly experienced Capital Desk staff can help you with opinions on what would be the best assets to suit your particular investment profile, creating a portfolio custom-designed for each our clients.

Market analysis of recommended companies:

Continuous Monitoring of our Assets: In order to do the best  job possible, and aware of the responsibility and complexity involved in the markets today, our analysts generate opinions on the securities our Brokerage Firm recommends.

Opinion on impact of Economic Variables on Equity assets.

Extensive Market Tracking: Our Capital Desk conducts a thorough professional analysis of exogenous and endogenous factors that might affect the price of stocks traded on the equity market.  Our experts continually formulate and update opinions on market conditions.

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