A stock exchange is an organized and regulated market where companies issue shares and bonds to raise capital, and where investors buy and sell those securities through authorized intermediaries. For the issuer, listing gives access to a broad investor base and liquidity, in exchange for disclosure requirements, corporate governance and ongoing costs.
This guide is aimed at anyone who runs a company and wonders whether the stock exchange is the right path: how it works, which stock exchanges operate in Latin America, what going public requires and what options exist when the company is not yet big enough to do so.
How a stock exchange works
The stock exchange operates in two stages. In the primary market, the company issues new securities and receives the investors' money: this is the IPO or a subsequent issuance of shares or debt. In the secondary market, those securities change hands among investors; the company does not receive money, but that liquidity is what makes its securities attractive in the next issuance.
Several players are involved: the issuing company; the intermediaries (brokerage firms or brokers), the only ones that can trade directly; the investors; the central securities depository and the clearing house, which record ownership and settle transactions; and the regulator, which authorizes offerings and supervises disclosures. The price is formed by supply and demand in an order book. If you want the complete map, check what is the capital market.
The main stock exchanges in Latin America
| Country | Stock Exchange | Regulator | Key fact for issuers |
|---|---|---|---|
| Mexico | Mexican Stock Exchange (BMV) and Institutional Stock Exchange (BIVA) | CNBV | BIVA began operations in July 2018 as the country's second stock exchange |
| Peru | Lima Stock Exchange (BVL) | SMV | It has the Alternative Market for Securities (MAV) for small and medium-sized companies |
| Chile | Santiago Stock Exchange | CMF | It operates ScaleX, a market for emerging and growing companies |
| Colombia | Colombia Stock Exchange (BVC) | Financial Superintendence of Colombia | It was formed in 2001 from the merger of the Bogotá, Medellín and Occidente stock exchanges |
| Argentina | Bolsas y Mercados Argentinos (BYMA) | CNV | Lists negotiable obligations issued under the PYME CNV regime |
The Santiago, Lima and Colombia stock exchanges are part of nuam, a regional holding company that seeks to integrate them into a single market. For an issuer in those countries, this may expand the reach of a local issuance in the future, although registration and supervision remain national.
What it takes for a company to go public
Details vary by country and exchange, but the process is similar across the region:
- Registration with the regulator of the company and the securities, for example in the Registro Nacional de Valores in Mexico or the Registro de Valores in Chile.
- Approved prospectus, with information about the business, risks, use of funds and structure of the offering.
- Audited financial statements for several fiscal years, usually under IFRS.
- Corporate governance: board with independent members, audit committee and conflict-of-interest policies.
- Exchange listing requirements, such as a minimum percentage of shares held by the public or a minimum number of shareholders.
- Placement through an intermediary or investment bank, which structures the offering and presents it to investors.
- Ongoing obligations: quarterly and annual reports, material events and insider information rules.
Add to that structuring costs, legal advice, auditing, credit rating in the case of debt and listing fees. Part of those costs is fixed, so it weighs much more on a small issuance than on a large one. We explain it step by step in what an IPO is.
Alternatives for mid-sized issuers
If your company has good revenue but not the size or structure for a full stock market listing, there are intermediate paths:
| Alternative | It fits if | To consider |
|---|---|---|
| SME segments of local exchanges (MAV in Peru, ScaleX in Chile, PYME CNV regime in Argentina) | Your investors are in your country and you seek reduced requirements | Limited secondary liquidity and local reach |
| Simplified issuer regime in Mexico, created by the December 2023 reform to the Ley del Mercado de Valores | You have access to institutional or qualified investors | The offering is limited to that type of investor |
| Tokenized issuance via the European Union | You are looking for European investors or a securities registry on distributed ledger technology | It is not equivalent to listing on an exchange; secondary trading depends on the available platforms |
The European route works like this: in Spain, tokenized securities are registered in an ERIR, a figure under Article 8 of Ley 6/2023, developed by RD 814/2023. Since 5 June 2026, the Prospectus Regulation allows offerings of up to 12 M€ without a prospectus, and these securities are governed by securities regulations, not by MiCA, which excludes them in Article 2.4. For trading, there is the DLT Pilot Regime, although its range of platforms remains limited.
No option is better in the abstract. The traditional exchange offers the greatest liquidity and visibility; SME segments reduce the burden without leaving the local market; tokenized issuance streamlines operations in exchange for a secondary market that is still developing. Compare both models in IPO vs STO: differences and review the route from the region in tokenization for Latin American issuers.
Is your company considering going public, but the costs and timelines do not fit its size? Take the issuance assessment (2 min) or request a proposal.
This content is informative and educational. It does not constitute legal, tax, or investment advice. Check the current version of each regulation in the BOE and on EUR-Lex.
HokenFi is a software and infrastructure provider; it does not provide regulated services (CASP, ESI, EAF, or ERIR). This article is informative and does not constitute financial or legal advice.
Frequently asked questions
What is the stock exchange and how does it work?
It is an organized and regulated market where companies issue shares and bonds to raise capital, and investors buy and sell them through authorized intermediaries. In the primary market, the company receives the money from the issuance; in the secondary market, the securities change hands among investors. The price is set by supply and demand, and a regulator supervises offerings and disclosure.
What does a company need to list on a stock exchange?
It varies by country, but in general it must register its securities with the regulator, publish an approved prospectus, submit audited financial statements for several fiscal years, adopt corporate governance with independent directors, and meet the stock exchange's listing requirements. It then assumes ongoing disclosure obligations and costs for auditing, advisory services, and listing fees.
What alternatives does a medium-sized company have to going public?
In Latin America there are segments for medium-sized companies, such as the MAV in Peru, ScaleX in Chile, or the PYME CNV regime in Argentina, and a simplified issuer regime in Mexico. Another option is tokenized issuance in the European Union, with registration in an ERIR in Spain and a prospectus exemption up to 12 million euros, although its secondary market is still limited.
