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Bolsa de Madrid

The Madrid stock exchange was created in 1831, which is why its 180-year history make it one of Spain’s oldest financial institutions.

In 1893 the Queen regent Maria Cristina inaugurates the new Madrid stock exchange headquarters, situated in the Plaza de la Lealtad, Madrid.

Along its long history, the Madrid stock exchange has played a decisive role in the history of Spain, alternating long booming industrial and economic cycles with others characterised by crises and downturns, but always acting as a true barometer of Spain’s economic trends.

The stock exchange is a market and as such, it trades a range of products and is a meeting point for the two most relevant figures in a free market economy: companies and savers. The former raise capital for their projects by issuing different assets, such as shares, bonds, obligations, etc, while savers and investors, both institutional and retail, seek a return on their investment.

The stock exchange has been fulfilling an essential function in the development of the economy, as it channels savings towards productive investments and helps the flow of wealth. As a secondary market the stock exchange offers investors the chance to turn into cash their share purchases when they wish. The liquidity is one of the main attributes of any market, as it allows any positions to be realised regardless of the investment’s short, long of medium term.

In the Royal Decree that allowed the creation of the Madrid stock exchange, this was described as “a fertile and consistent source of prosperity”. This is what it has continued to be during its long trajectory, both when the Palace building was a specific meeting point used by savers and companies to play a decisive role in the country’s development and over the last few years, as new technologies have muffled the traditional hustle and bustle on the trading floor. However, the stock market continues to be the main actor in its role as a source of financing to companies.

 

 

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