Latin America Collection

Located in downtown Managua, Nicaragua's Stock Exchange, or
Bolsa de Valores (BVDN), opened for trading January 31, 1994.
It was created by the first post-Sandinista government of Violeta


Chamorro, as an attempt to modernize the country's financial
system. It is currently trading at $34.8 million.
Like the banking system the Nicaraguan stock market is
regulated by the Superintendencia de Bancos (Superintendency
of Banks), but it operates in Nicaragua as a private business.
The Nicaraguan stock market was set up, primarily, as a way to
offer alternative finance options to public and private businesses,
allowing them to diversify their source of funds by putting them
directly in touch with individual financers, and usually at rates
lower than those offered by credit banks.
The stock market sells bonds, promissory notes, and certificates
for a defined term of maturity at a fixed interest rate. The bond
notes are sold on four different markets, in both córdobas and
dollars. There is no minimum investment in the Nicaraguan
Stock Market. Individual financers have invested amounts
ranging from $30 to $10 million. There is no capital gains tax
paid when the bond or promissory note is converted to cash.
Speculating and competition in Nicaragua's stock market is not
like it is in the international markets, thus making it less
attractive than those markets which deal enormous amounts of
money, making it possible to earn large profits.
For additional information about the country's National Stock
Exchange, contact: Bolsa de Valores de Nicaragua, S.A. Tel:
(505) 278-3830, Fax: (505) 278-3836. Web.
http://www.bolsanic.com