The Stock and Merchandise Market Law

This Law sets definitions for stock, merchandise, contracts, and risk management. The definition of stock represents notable progress in the subject, since former commercial laws did not contemplate it. Also, it states that stock may incorporate or represent property, credit, or participation rights.

The Law grants a wide margin of self regulation to the stock market. The Stock and Merchandise Market Registry is defined by the Law as an authority that controls market legality, with regulated faculties and an eminently technical nature.

Adequate regulation of public auction is one of the essential elements in the development of the stock market. The Law establishes the terms and conditions in which public auction can be conducted, inside and outside the stock exchange.

The Law achieves substantial progress in the regulation of new juridical institutions, that will decidedly contribute to the strengthening and development of the stock market in our country.

Finally, the Law defines and regulates key institutions in the field of institutional investment. Investment trusts and Investment Fund contracts facilitate the creation of investment institutions in the country, thus raising the demand for long term financial instruments.