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The Capital Market
Publicly-traded companies use the stock exchanges (1) or over-the-counter market (2) to raise investor funds in order to finance their investment projects and become more competitive.
This is essential today, since the corporate environment demands that investments in modernization, updating and research and development of new products and processes be continuous.
The Brazilian capital markets and financial systems are regulated and monitored by the National Monetary Council (Conselho Monetário Nacional - "CMN"), the Central Bank of Brazil (Banco Central do Brasil - "Central Bank") and the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - "CVM"). In accordance with Brazilian regulations, the creation and operation of organized securities markets and custody and settlement systems require prior authorization of the CVM and the Central Bank, depending on the market. Furthermore, entities that engage in those activities and their agents are subject to specific and strict regulatory oversight.
In Brazil, the market is integrated. BM&FBovespa develops, implements and provides systems for trading stock, stock derivatives, fixed income securities, federal government securities, financial derivatives, spot currencies, and agricultural and livestock commodities.
(1) Intermediary institution for capital market transactions
(2) Institution where marketable securities are traded
Among the advantages of going public for companies are: