Importance in Europe

Importance in Europe

In Spain there are four official stock exchanges: oldest Barcelona (1915), Bilbao (1890) -the Madrid, created in 1831 and Valencia (1970). They essentially traded shares, but bonds (including convertible), subscription rights and warrants are also exchanged.

Shares listed on the Stock Exchange reached a significant portion of the financial assets of households in 1999, representing more than 30%, almost equated to the amounts invested in bank deposits, which, after ten years of downward trend influenced by -very declines in interest rates, the increased risk taking by investors and financial-wider range of products, rebounded in 2000 as a result of highly profitable deposits offered by financial institutions specializing in the operational Internet.

During the crisis in the stock markets from 2000 to March 2003 he was dented investment in the stock market, reducing the percentage owned by Spanish households in stocks to 21%. From 2004 he turned recover reaching 32% in 2008.

High growth and importance of the stock market as a destination for investment is mainly due to the following reasons:

- Reduction of interest rates and, consequently, reduced the profitability of fixed-income financial assets and bank deposits.

- Produced economic expansion, especially since 1996, which has provided greater financial capacity of families.

- High spreading the bag directly or indirectly through other financial products such as investment funds, structured products, etc.

- Privatization of public companies with high recognition (Repsol, Endesa, Telefonica, etc.).

- Increased financial literacy and therefore greater interest in financial markets and the assumption of greater risks.

- Just as some fashion that has led the investment in equities to many people, regardless of their age, social class, etc.

- Internet has also substantially favored the development of financial markets to obtain information (quotes, reports of domestic and foreign analysts, etc.), in many cases free of charge; and operate through the network, without having to physically go to banks or specialized entities operating in the financial markets, also improving costs for end investors.

The bag is considered a secondary market, ie a place or institution where financial assets that have already been issued prior to the primary market issuance or traded