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Comparison of Panama IPO Market to Us Market
there are not bounds imposed by the provinces separately.
Another important difference in the IPO’s markets is that in Panama there is only one stock exchange, known as the Bolsa de Valores de Panamá, S. A., whereas there are several stock exchanges in the USA, such as NYSE, AMEX and NASDAQ, where the IPO’s can be traded.
The markets of the IPO’s differ much as for the size of each of them to make the initial offering, since the Panamanian market has a population of merely 2 million people, out of which only 6 to 7% has a savings and investing capacity, whereas in the USA there is a population of 292 million people with a high degree of investing power.
Another difference between both markets is that transactions in the USA can be made on the Internet, while in Panama the technological platform to provide such service does not exist yet.
Another difference about the initial offering in both markets is that there are no restrictions as for the initial price of the securities offering in the Panamanian market, as long as it has fulfilled the requirements of the CNV, whereas certain restrictions in the US market do exist about the initial price.
CONCLUSION
After our research, we can state that not all companies are eligible to go public, since this is a complex and costly decision, which requires legal and financial professional advice, in which accountants and lawyers play a preponderant role.
By making a comparison between the IPO’s in Panama and the United States, we can see that there are more similarities than differences between these two markets.
The larger amount of similarities is caused by the fact that the regulations in Panama are based on the American ones. The few differences we can find exist due to the discrepancies in size and development of each of these markets.
As conclusion, we can say that IPO’s in Panama resemble the worldwide trend of countries in development level, promoting its securities markets with the hope that those efforts can be seen reflected in terms of a more accelerated economic growth.