Here you will find answers to a selection of the most frequently asked questions about the stock market ecosystem at BME (Bolsas y Mercados Españoles).
We have grouped the most relevant topics into three main categories:
FAQs
What is the Stock Exchange?
The stock exchange is a market where different financial products are traded and where buyers and sellers are connected. In essence, it is an important meeting point between two essential figures in the economy: companies seeking financing and savers or investors seeking to make their money grow. Read more
What is fixed income and how does it work?
Fixed income is a type of investment that provides regular and predictable payments to investors. Unlike variable income, where payments can vary, fixed income offers a steady stream of revenue. In this article, we will explore in detail what fixed income is, its characteristics, the different types, and how it compares to variable income. Read more
What is equities and how does it works?
Equities are a popular investment option offering significant growth potential but also come with risks. In this article, we will explore what equities are, how they work, the different types available, their risks, and their importance in a diversified portfolio. Read more
What are ETFs?
ETFs, also known as exchange-traded funds, combine features of mutual funds and equities. These instruments allow the diversification of a portfolio of funds, while offering the flexibility to buy and sell on the stock exchange in a single transaction. Read more
What are Warrants?
A warrant is a financial instrument that gives the holder the right, but not the obligation, to buy or sell a specific asset at an agreed price. There are two types: the call warrant, which allows the asset to be bought, and the put warrant, which allows the asset to be sold. The price and maturity are fixed at the time of issue. Depending on the type of warrant, you can exercise this right during or at the end of its term. Read more
Where can I get information about an upcoming IPO?
When a company wishes to go public, it is mandatory that it submits a "Prospectus" to the Comisión Nacional del Mercado de Valores (CNMV) (Spanish Securities and Exchange Commission). This document provides investors with complete information on the issuing company, its economic and financial situation and other information of interest in order to make an informed investment decision.
What to consider before investing in the stock market?
Investment decisions should be made with a few factors in mind:
- Be based on facts, not rumours.
- The higher the expected return, the higher the risk.
- Define the investment period; it is advisable to consider investing in the medium to long term.
- Diversify the investment, i.e. do not invest everything in the same product or security.
- A management contract can be established with the intermediary so that he can make decisions and inform us of the progress of our investment.
- Not all securities have the same liquidity.
- Consider brokerage costs and tax effects.
How can I start investing in the stock market?
- Select a member broker of the Exchange: Member brokers are the direct link to trade on the stock exchange. You cannot trade on the stock exchange without an intermediary.
- Open a securities account: This is similar to a checking account, but instead of money, it stores shares or other financial assets.
- Link your securities account to a checking account: This account is used to:
- Deposit the money needed to buy shares.
- Receive funds from the sale of shares, dividends and other returns.
- Seek expert advice: The support and expertise of an intermediary can be key to making informed investment decisions.
- Use online platforms: Most intermediaries offer digital tools that make it easy to track and execute your investments from anywhere.
- Consider other intermediaries: If you choose a non-broker, be aware that they will channel your orders through a broker that is a member of the exchange.
Do all intermediaries charge the same commissions?
No, the commissions charged by intermediaries in Spain are free and can therefore vary from one to another. They may also vary according to the services offered. All intermediaries are obliged to make their official fees available to investors.
How to invest in fixed income?
Fixed income is a popular investment option due to its stability and predictability. In this article, we offer tips, detailed steps, and strategies for investing in fixed income, especially for beginners. Read more
Is there a minimum amount to become a shareholder?
The minimum amount would be the value of one share (plus the costs charged by the intermediary) of any of the listed companies.
What is credit risk and how to evaluate it
Credit risk is a crucial consideration for investors seeking to maintain the stability and security of their investments. In this article, we will explain what credit risk is, the different types of credit risks, how to evaluate credit scores, and strategies to mitigate this risk. Read more
Diversify investments: what and how
Diversifying investments is a key strategy for managing risk and maximizing returns. In this article, we'll explain what diversification is, its importance, the fundamental principles, and the tools and resources needed to diversify effectively. Read more
What are the differences between technical and fundamental analysis?
The main objective of the research is to provide information to help users make the best investment decisions by identifying and predicting price movements. When analyzing investments, investors often use technical and fundamental research. Read more
What are the advantages of investing in ETFs?
Investing in ETFs or Exchange Traded Funds offers numerous advantages. These exchange-traded funds facilitate portfolio diversification with a single transaction, while keeping costs low. In addition, they allow you to implement hedging strategies as a complement to derivative products. Read more
Can I buy shares of Latin American companies on the Spanish Stock Exchange?
Yes, shares of Latin American companies are listed on the Latibex market and are traded and settled in the same way as any security listed on the Spanish Stock Exchange. They are traded in Euros, which allows European investors to trade Latin American stocks in their own currency, avoiding the complexity of dealing with several different currencies on a daily basis.
Where can I get historical stock market prices?
You can obtain historical stock market prices through BME Market Data, which also offers real-time and end-of-day data. BME Market Data specialises in generating and trading information from BME's regulated markets and trading systems.
What is the IBEX 35?
The IBEX 35® is the benchmark stock market index in the Spanish stock market, composed of the 35 most liquid companies with the largest market capitalization in Spain. This index reflects the performance of the shares of these companies and is a key indicator for evaluating the economic and financial health of Spain. Read more
What are indices?
Indices are fundamental tools in the financial world that reflect the performance of a set of securities. In this article, we will explore what indices are, how they work, what they are used for, their importance in the financial market and their influence on investments. Read more