La Paz Stock Exchange (BBV)

The La Paz Stock Exchange, also known as Bolsa Boliviana de Valores, was founded in 1989 and today offers to trade of equities, indexes, and commodities in Bolivia. The exchange is the newest in South America trading in stocks is sparse with most trades in bonds. The exchange has seen multiple changes in ownership since its inception and has been greeted with increased competition in South America.

Trading is concentrated on gold and commodity transactions. The activity in the 1990s and 2000s increased with the enlisting of various banking, industrial and services companies along with additional derivative instruments, leading to an increase in volume from years past in which equity investments made up the majority.

The Exchange was founded as a non-profit corporation with 71 members, with a subscribed capital of 1,420,000 bolivianos, limiting the shareholding to the possession of a single share per member. Instruments of sectors traded include agro-industry, banks, electrical, industrial, oil, financial services, and transport.

"We are the principal reference in the development of the stock market of Bolivia, a dynamic and innovative institution that has highly skilled human resources and technology. Vision [is to be] an institution recognized in the country by our contribution to the development of financial markets and admired because of the transparency and innovation of our operations, supporting the growth of big, medium, and small-sized companies with efficient and inclusive form," according to the exchange.

Its stated objectives are to "Strengthen the institutional position and operative management of the BBV; perfect the relations of the Stock exchange with the Agencies of Stock exchange as a medium for the development of the stock market; expand and diversify the quantity of companies that was opt for the Stock exchange as a source of financing; improve the market of investors that opt for the Stock exchange; promote the development of the stock market and its regulation; adopt and strengthen the necessary technologies to bear the development of the stock market."

Investing here can be problematic. "Bolivia’s overall economic development remains severely hampered by structural and institutional problems. Heavily dependent on the hydrocarbon sector, the economy lacks dynamism. Other problems include poor economic infrastructure, a weak regulatory framework, lack of access to market financing, a nontransparent investment regime, pervasive corruption, and the weak rule of law," reports the Heritage Foundation. The financial sector remains vulnerable to state interference, with credit to the private sector expanding slowly. Capital markets are focused on trading in government bonds, the Foundation added.