The Swiss Stock Exchange — Gustavo Mirabal — Panampost
History of the Swiss Stock Exchange
The Swiss Stock Exchange have their appearance in the middle of the nineteenth century (XIX). along with the growth of industries, the creation of the Railways and the development and expansion of commerce at the time.
Fact that favored the promotion of the expansion of investments and markets, fostering the creation of the Swiss Stock Exchange.
Switzerland is a nation that stands out in the financial field for having seven Stock Exchanges where they trade their securities and titles and these in turn are linked to seven (7) Stock Market places in association and are the following:
1.- Saint Gall effects bag.
2.-Union of Stock Exchanges of Zurich.
3.- Neuchatel Stock Exchange.
4.- Lausanne Stock Exchange.
5.- Comrade the (Geneva Stock Exchange).
6.- The union of the Stock Exchange of (Bern).
7. The chamber of the (Basel Stock Exchange.
Among the Swiss Stock Exchanges we have the most important that we will explain below:
The Basel Stock Exchange
This Stock Exchange was characterized by having a large commercial activity since the Middle Evo period; It was one of the first, and gave way to a figure known as the “Auction Stock Exchange”.
This had its constitution for the year 1866 and ceased its activities in the year 1998; when it makes a merger with the “SWX Swiss Exchangue”.
Swx Swiss Exchange e-commerce exchange
It is headquartered in Zurich and is the main Swiss Stock Exchange, it was founded in the year 1995; was born from the merger of the three most important Swiss Stock Exchanges, (Geneva, Basel and Zurich).
Geneva Stock Exchange
This was born as a result of an initiative of private order during the seventeenth century (XVII), where the figures of (exchange brokers) were present, they carried out the mediation to carry out the sales and purchases and also gave way to the contracting of securities furniture.
Its founding date refers to the year 1850, being open for people (registered in the cansilleria), operating with public sessions.
Zurich Stock Exchange
It has its origin in the early nineteenth century (XIV). in 1850, motivated by the nascent industrial development, and its conversion into a financial market; owning a variety of (exchangers and securities brokers).
It obtained its first regulation for the year 1855.
It is governed by the organization of the “Union de Bolsa de Effects de Zurich” which is called (Effektenborsenverein Zurich). in turn, they have their own Broker law and their rates on stock transactions.
It has its own law created on December 22 (22) of the year 1912; still valid today.
Companies listed on the Swiss Stock Exchange
Below we will mention the twenty (20) most prominent companies listed on the Swiss Stock Exchange:
- Sika Ag.
- Nestle.
- Novartis.
- Roche.
- UBS.
- Zurich Insurance.
- ABB.
- Richemont.
- Lonza.
- Givaudam.
- Alcon.
- Swiss Re.
- Credit Suisse.
- Lafarge Holcim.
- Geberit.
- SGS.
- Swiss Com.
- Swiss Life Holding.
- Swatch Group.
- Adecco.
- Sika Ag.
Advantages of the Swiss Stock Exchange
- It has a world-class (infrastructure).
- Highly qualified staff.
- Legal environment and regulations
Disadvantages of the Swiss Stock Exchange
- It has no federal legislation on (Bags).
- Each Stock Exchange is made up of a square that in turn is governed by Cantonal legislation). comprising private law companies.
- It has restrictive associations and with public law monopolies.
- It does not include legislation of the (“Banks”), in its field of activities.
- Foreign titles must be presented at the designated (admission) offices.
How the Swiss Stock Exchange works
The Swiss financial system mainly encompasses Banks, lawyers and insurance companies that act as intermediaries in financial matters. and it uses the “SMI” index, mainly.
Index “SMI”
The index (SMI), short for Swiss Market Index; In Spanish it would be read the Swiss Market Index is the main one (Stock Index) that includes the companies of the Stock Market.
This index is calculated taking into consideration the (floating capitalization), that is, the sum of the registered values, the total capitalization (divided by the divisor).
Differences between Brockers and Dealers
Brockers
- They serve as intermediaries establishing contacts between buyers and sellers of Shares and (securities).
- They do not assume positions within the Markets.
- They receive their profits and benefits through the collection of commissions for operations carried out.
- Absence of risks for both the portfolio and the Market.
- They require financial resources and guarantees at the time of their establishment at a lower cost.
Dealers
- They offer contact between buyers and sellers of financial assets acting on their own (own account).
- They assume positions within the market.
- They obtain benefits through the Their benefits are given by the difference between the prices of sale to investors and purchase in the markets.
- They comprise greater risks to (the portfolio and the Market).
- They need many (financial resources and guarantees).
Author: Gustavo Mirabal
Making the best decisions regarding expenses, savings and investment is a matter of general interest, Gustavo Mirabal through this space intends to massively promote education on the financial issue.
Who is Gustavo Mirabal?
Gustavo Mirabal, is a Financial Advisor, Lawyer and Entrepreneur, founder of the Law Firm Mirabal and Asocciates FZ LLC that provides independent, integrated and complete wealth management advice using a holistic approach focused on the creation and preservation of wealth.
Gustavo Mirabal is a member of a family of renowned Venezuelan politicians, he is the son of the prestigious leader of the Venezuelan Democratic Action party (AD), former governor of the city of Caracas and former Minister of Public Works Gustavo Mirabal Bustillos.