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'Bovespa - São Paulo Stock Exchange' (''Portuguese'': Bolsa de Valores de São Paulo). Located in the heart of the biggest Brazilian city, São Paulo, Bovespa is the largest stock exchange in Latin America. On an average day (in 2004 figures), shares valued at R$ 1,221.3 million were traded on Bovespa , where US$1.00 = R$1.91 approximately.
Established in August 23, 1890 on Rua 15 de Novembro, it was a state institution until 1966, when it became a non-profit civil association.
Bovespa is linked to all Brazilian stock exchanges, including Rio de Janeiro's Boverj, where only government bonds are traded.
Brazilian stocks rise and fall depending on a number of factors, including the direction of monetary policy as determined by the SELIC rate of the Brazilian Central Bank. The benchmark indicator of Bovespa is the 50-stock Índice Bovespa.
On Bovespa, preferred stock ('Preferencial Nominativa' in Portuguese, or simply 'PN') is sometimes the most-traded class of stock for a particular company, although common stock (Ordinária Nominativa, or 'ON' in Portuguese) is also available for trading.
The number of companies traded at Bovespa is close to 550, according to the Bovespa website.
During January 2006 Bovespa reached a record mark with 38.382 points, which is about R$2.9 billion reais, with the capital movement of 2.5 billion of reais about US$1.3 billions negotiated in the same month.
On April 9 2007, Bovespa set a record mark with 50,0 thousand points, which represents R$4.02 billion reais.
On May 9 2007, Bovespa set a record mark with 51,300, which represents R$4.78 billion reais.

Contents

History

See also

On the News

External links

History

Founded on August 23, 1890 by Emilio Rangel Pestana, the "Bolsa de Valores de São Paulo" (São Paulo Stock Exchange, in English) has had a long history of services provided to the stock market and the Brazilian economy. Until the mid-1960s, Bovespa and the other Brazilian stock markets were state-owned companies, tied with the Secretary of Finances of the states they belonged to, and brokers were appointed by the government.
After the reforms of the national financial system and the stock market implemented in 1965/1966, the Brazilian stock markets had assumed the institutional role that it keeps until today, changing to a non-profit civil association, with administrative, financial and patrimonial autonomy. The old individual figure of the broker of government securities was substituted by the commercial broker.
Through self-regulation, Bovespa operates under the supervision of the "Comissão de Valores Mobiliários" (CVM or Commission of Movable Assets in English), analogous to the American SEC. Since the 1960s, it has constantly evolved with the help of technology such as the introduction of computer-based systems, mobile phones and the internet. In 1972, Bovespa was the first Brazilian stock market to implement an automated system for the dissemination of information on-line and in real time, through an ample network of computer terminals.

At the end of the 1970s, Bovespa also introduced a telephone trading system in Brazil; the "Sistema Privado de Operações por Telefone" (Private System of Telephone Trading, in Portuguese), the SPOT. At the same time, Bovespa developed a system of fungible safekeeping and online services for brokerage firms.
In 1990, the negotiations through the Sistema de Negociação Eletrônica - CATS (Computer Assisted Trading System) was simultaneously operated with the traditional system of "Pregão Viva Voz" (Live Voice Trading). Currently, the Bovespa is a completely eletronic market, as all trades are performed via the electronic system.
In 1997, a new system of electronic negotiation of the Bovespa, the Mega, was implemented successfully. The Mega extends the potential volume of processing of information and allows that Bovespa to increase its overall volume of activities.
With the goal to increase popular access to the stock markets, Bovespa introduced in 1999 the "Home Broker" and "After-Market", both electronic trading systems allowing small and medium-size investors to participate in trading. The Home Broker system allows users to immediately execute sell and buy orders inside the stock exchange remotely using the internet. The "After-Market" is an evening trading service, where trades are performed even after the market has closed.

See also

★ Índice Bovespa (Bovespa Index)

★ List of companies traded at Bovespa

On the News

★ Reuter's Article

External links

★ Bovespa's Official Home Page (in English)

★ History

★ List of all companies listed on Bovespa