What Is the Caracas Stock Exchange (CCS) .CR?

The Caracas Stock Exchange is located in Caracas, the capital city of Venezuela. Though Venezuela is known as a socialist country, there still is some private ownership of property and businesses, unlike in more traditionally socialist countries that once existed in the Soviet bloc. The Caracas Stock exchange is the main venue for trading in shares of public companies. It is known as Bolsa de Valores de Caracas in Spanish.

Understanding the Caracas Stock Exchange (CCS) .CR

The Caracas Stock Exchange implemented an automated trading system in 1992 and conducts the majority of securities transactions in Venezuela, but it is one of the smaller stock exchanges in Latin America. The primary gauge of the value of companies traded on the Caracas Stock Exchange is the Caracas Stock Index, which consists of 11 companies, and is also known as the General Index. The Caracas Stock Index is a capitalization-weighted index that tracks the value of the most liquid and densely traded companies in Venezuela, including Banco Nacional de Crédito, and Banco Provincial. 

The National Securities Commission is the Venezuelan regulatory body tasked with regulating the listing, sale, and trading of securities in Venezuela. The trading day for equities at the Caracas Stock Exchange is broken up into three sessions. The pre-opening runs from 8:30 a.m. to 9:00 a.m.; the market session is from 9:00 am to 1:00 pm; and the post-closing runs from 1:00 p.m. to 1:30 p.m. Fixed income securities are traded from 8:30 am to 1:00 pm. 

The Caracas Stock Exchange and the Venezuelan Economy

The Caracas Stock Exchange traces its roots to 1805 when the country was still under the rule of the Spanish Empire. That year, Don Bruno Abasolo y Don Fernando Key Muñoz founded a trading house in Caracas that evolved into the exchange that is still in existence today. The institution known as the Caracas Stock Exchange was first registered in 1947 and consisted of 22 seats. 

The Venezuelan economy is dependent on oil exports, as energy production contributes significantly to the country's gross domestic product. The oil sector is dominated by Petróleos de Venezuela, the state-owned oil and natural gas company founded in 1976 after the government nationalized the oil industry. The company provides the government of Venezuela with about half of its revenues, and the economic fortunes of most Venezuelans rise and fall based on the price of oil.