What’s the Madrid Stock Exchange?

[ad_1]

The Madrid Stock Exchange, also known as the Madrid Stock Exchange, is the largest stock and bond trading market in Spain. This stock market has one of the longest and most colorful histories of any other European market. The current incarnation of the market uses a fully electronic system and is powered by a large index representing billions of euros in trades.

The history of this exchange dates back more than 200 years, making it one of the oldest in the world. However, the first founding of a stock market in Madrid was not a success. In an attempt to imitate the financial blessing of the stock markets in Bruges and Amsterdam, the Spaniard José Bonaparte opened a stock exchange in a monastery and church in Madrid in 1809. The city, however, was not a major center of commerce in that time and the new market quickly went bankrupt. It would be more than 20 years before the Madrid Stock Exchange was permanently established.

Opening its doors in 1831, thanks to an approved law that established a national market, the Madrid Stock Exchange was born. Over the next 100 years, the market experienced many fluctuations due to the Spanish government losing control of countries like Puerto Rico, World War I, and the Great Depression. The biggest change occurred between 1936 and 1940, when the market closed due to the Spanish Civil War. After World War II ended, the market enjoyed stability and prosperity, joined the European Union, and thus began trading all its stocks based on the Euro.

A dedication to the most modern technology available is the cornerstone of the modern Madrid Stock Exchange. From the beginning of the exchange until the 1990s, all trades and deals were done on the exchange floor and handled verbally. A fully electronic system was adopted in 1993 allowing for more efficient exchanges and better record keeping.

The Madrid market bases its operations on the Madrid Stock Exchange Index, a directory used to measure the performance of selected stocks. The index monitors several different national and international industries that are important to Spain, including construction, finance companies, energy companies, consumer goods, and more. The IBEX 35 is a concentrated form of the Index, shortened to the 35 most liquid shares traded on the Madrid market and is comparable to the NASDAQ index of the United States.

Smart Asset.

[ad_2]