Caracas Stock Exchange
The Bolsa de Valores de Caracas (BVC) or as it is more commonly referred to, Caracas Stock Exchange is located in Caracas, Venezuela. It was first founded in 1947 but three decades later it amalgamated with its competitor to become the only securities exchange operating in Venezuela. The merged exchanges had 43 shareholders, which later increased to 63 members in 1995.
The Venezuelan stock market originated at the end of the colonial era, when Don Fernando Key Munoz and Don Bruno Abasolo founded the Casa de Bolsa Recreacion de los Comerciantes y Labrodores in Caracas in 1805.
BVC has kept up to date with global technology and is fully electronic. It is categorized under the private sector, providing operations to authorize the sale of securities and the ability to purchase under the Capital Marketing Laws of Venezuela. The BVC is one of the members of the Executive Committee of the Latin American Federation of Stock markets. The exchange is also used as a site for trading in Bonds and other different debt instruments.
Venezuela’s economy is based on oil, although the country has made some efforts to develop the heavy industry, which incorporates steel and aluminum. Between 1950 and the 1980’s the Venezuelan economy was considered one of the strongest in South America. The growth of the country’s economy attracted many immigrants, but it was not to last as oil prices crashed in the mid 1980s. Since then the fluctuating oil price has had an effect on the Venezuelan economy, and the Caracas Stock Exchange.
Manufacturing contributed a total of 14% of the GDP in 2002. Venezuela produces and exports textiles, steel, aluminum, foodstuffs, and beverages. They also manufacture tires, cement, fertilizer, and paper and put cars together for export markets as well as for the domestic sector. Venezuela’s other exports include fish, rice, tropical fruits, cocoa, coffee and cigarettes. Venezuela is unable to support itself agriculturally, and imports nearly two-thirds of its food needs. For 2005 the GDP (PPP) was a total of $153.7 billion with a 9.3% growth. The GDP per capita was a total of $6,100 and was made up of agriculture, services and the industry sector.