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Comparison of Panama IPO Market to Us Market
is necessary to awaken interest in the alternative investments represented by the Securities Market. Also, the current crisis of International Banking Centers has surpassed its conditions to the National Banking Center, making attractive other investments alternatives that generate higher profitability for investors. The CNV is performing a titanic task that in many aspects implies a struggle against negative patterns of behavior too embedded in our society. However, with the effort of all, it is a labor that will produce large tangible benefits for the development of the country and its population. This way, we will be contributing to the successful development of this activity that generates new sources of financing for our businesspeople, which in turn produce higher levels of profitability for depositors that choose to invest in Panama’s Securities Market.
9. The Panama Stock Exchange
There’s only one stock exchange in Panama, Bolsa de Valores de Panamá, S. A. (Panama Stock Exchange, BVP in Spanish). The BVP is a corporation incorporated under the laws of the Republic of Panama; its shareholding group is integrated by the main banks of the location, including the National Bank of Panama, as well as commercial, insurance and industrial enterprises, businesspersons, professionals and securities agents.
The authorized capital of the BVP is US$1,800,000 divided in 180,000 shares. This level of capitalization is caused in first instance, by the interest of giving participation in the exchange to an ample and diversified number of shareholders and the purpose of setting up an administrative apparatus that could offer an efficient service and a data-processing system with capacity to store and having available and easy-to-access by the public, information about enterprises and entities whose securities are traded in the exchange.
Exchange members must be entities with legal capacity, whose shares must have been issued in nominal manner in favor of natural persons, except in cases of banks or public-holding enterprises. Besides, members of the BVP must follow these requirements:
· To devote solely to securities negotiation in an exchange.
· To have a securities agent properly authorized by the BVP of Panama as legal representative or general holder of power of attorney.
· To feature a paid capital no lesser than US$250,000 and being owner of 2,500 shares of stock of BVP.
· To possess the necessary professional capacity for this kind of activities.
· To be the beneficiary of a fidelity and compliance policy that the BVP requests.
At all times, members of the BVP are subject to audits and investigations that the BVP decides to carry on, and their rights may not be alienated to third parties without previous authorization by the BVP. This way, the BVP will allow a large participation of all interested parties that comply with the necessary conditions for that.
The BVP is a market where a series of products are traded and where buyers and sellers get in touch; it is [next page]