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Dominican Stock Market


Posted on | Darys Estrella


What is the stock market? I always make a comparison with the Mella market here in the capital where many buyers and sellers gather to trade products. In the case of the stock market, financial products such as stocks, bonds, mutual fund shares, among others, are traded. All these transactions are made through a technological platform that clearly and concisely establishes the rules of the game.

When we look at the statistics published by the Central Bank of the Dominican Republic, we see how our country has had a robust growth rate averaging 6.5% during the last five years, being the highest growth rate in Latin America. delicious. In terms of inflation, it has been decreasing and the average has been 2.5% during the same period. Our currency, the Dominican peso, has been one of the most stable currencies in the entire region, although we have seen a slight acceleration in recent months. All this economic panorama has helped a lot in the development of the Dominican stock market because people feel stability and therefore feel safe and willing to invest.

What is the stock market? I always make a comparison with the Mella market here in the capital where many buyers and sellers gather to trade products. In the case of the stock market, financial products such as stocks, bonds, mutual fund shares, among others, are traded. All these transactions are made through a technological platform that clearly and concisely establishes the rules of the game. This makes the negotiation process much more agile and efficient since it is done electronically. At the same time, the investor feels confident and secure when investing.

Who participates in the stock market? Issuing companies are companies that need medium and long-term financing and issue debt or shares to sell on the market. These have already been authorized by the superintendency of the stock market (SIMV) to be able to go on the market with that issue. Investors are those who buy and sell and are natural or legal persons who are looking for a return to grow their money. These are the Stock Markets, which serve as intermediaries and is where you should go to open an account and be able to make any transaction. They also have to be authorized by SIMV. The superintendency of the stock market is the one who regulates all market participants and ensures that everything works as it should. The Stock Exchange (BVRD) is the platform through which the Stockbrokers carry out their transactions. The BVRD has been like the market of the Nick that I mentioned at the beginning. It is important to know that you do not invest in the Stock Market but through it. These are the risk rating agencies that rate the risk of the company that issues the debt; the securities center (Cevaldom) who registers and custody all the securities of the clients. Through this platform, all market transactions are cleared and settled. There are also securitization companies, investment fund management companies, and trust entities.

Investing in the Dominican stock market is much simpler than you think. You don't have to be an expert and you don't have to be rich. You can become an investor with little money. My recommendation is that you go right now to a Stock Exchange authorized by both the BVRD and the SIMV, open an account and start investing right away. What leaves them even a recommendation? Invest in a real estate fund in dollars that is offering very good returns, about 6% per year.