Location of Nicaragua Stock Exchange
Bolsa De Valores de Nicaragua or BVDN is the only legally recognized stock exchange operating in Nicaragua. The official address of BVDN is Centro Financiero Banic, 1er Piso, 51/2 Carretra Masaya.
Background of Nicaragua Stock Exchange
It was on January 31, 1994 that this Stock Exchange started its official trading operations. Since then, till the year 2006, BVDN is the only organized stock exchange in the country. This stock exchange was set up with a view to liberalize the country's market by the private sector. BVDN is a joint stock company founded by state and private banks and also by enterpreneurs from various enterprising groups and other business sectors. BVDN is a platform provided to the domestic investors and also foreign shareholders to function within the framework of an open market economy. Stock market values of Nicaragua is provided daily in a bulletein form alongwith the information of the prices and yields of the agreed operations. The main charecteristics of the stock market are as follows:
- No restrictions on foreign direct investment (FDR)
- A total exemption of income and capital gains taxes for traded securities
- Fixed income financial instruments in U.S. dollars and local currency indices
- An effective regulatory frame
Legal Framework of Nicaragua Stock Exchange
The President of the Nicaragua Stock Exchange as of 2006 is Dr Raul A. Lacayo Solorzano. The BVDN operates under the strict supervision of banks and many other financial institutions. Trading activity, market positions as well as stock brokers and issuers of securities are supervised. The General Stock Market Regulations or the Presidential Decree 33-93 conforms the specific regulatory frame of exchange activity of this stock exchange.
