Going Public: it's about time!

Stock exchanges have been operating in Guatemala for only eight years, but more than 160 million quetzals, equivalent to about 27 million dollars are being negotiated daily at the two exchanges in the country, Bolsa de Valores Nacional and Corporación Bursatil. But our markets are still starting to develop, since most transactions are registered through debentures negotiated in the secondary money market.

The equity market through the stock exchanges as a way to obtain financial aid for private enterprises is the most adequate way make companies grow in the more advanced financial markets. It is also a way to obtain money without having to assume high interest debts.

But among Guatemalan businessmen, there seems to be a misconception of what "going public" really means. Especially those companies managed as a family Business fear that someone who does not belong to the family will own it and make decisions. On the other hand they do not take into account the great amount of benefits this policy may bring. They seem to have forgotten that in an irreversible globalization process they will have to be competitive, since most of the competition comes from International companies which capitalize themselves by issuing stocks.