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 Frequently Asked Questions

Market Closed 09-19-2019 09:30 AM GMT -03:00

Frequently Asked Questions

  • What is the composition of the exchange’s Board of Directors?

    Santiago Exchange’s Board of Directors is currently composed of eleven members, which together elect a Chairman. The law specifically states that the board must be made up of at least five members, who may or may not be shareholders, and must hold elections annually, where members may be reelected. 

  • What is a material event?

    A material event is a report that the SVS provides to the market and the community in general with all the relevant information of overseen entities from the stock market and insurance market, among others. All entities registered in the Securities Registry must disclose accurate and timely information about their businesses and securities, where "material" is understood to be all information considered relevant for investment decisions of individuals. 

  • What do we offer?

    Comprehensive trading, information and management products and services for financial institutions and investors. 

  • What is a UF?

    The UF or CLF is an inflation-indexed currency unit. 

  • According to the law, what are the objectives of the exchange?

    According to article 38 of the Securities Market Law, stock exchanges are organizations that aim to provide their members with the necessary infrastructure to effectively carry out securities transactions through continuous public auction and to perform other intermediation services in accordance with the law. 

  • What law regulates the securities market?

    The law regulating the proper functioning of the market is the Securities Market Law 18,045. 

  • Who are our clients?

    Brokers, financial providers, companies and investors. 

  • What is the CPI?

    The consumer price index or CPI is an indicator developed by the Chilean National Institute of Statistics to calculate monthly inflation. It is disclosed to the market the first week of each month. 

  • What is Santiago Exchange?

    Santiago Exchange is an exchange whose primary role is to provide buyers and sellers of securities a physical meeting place for them to trade through services provided by brokers. Santiago Exchange is a public company composed of 48 shares, and its operation is overseen by the Chilean Securities and Insurance Supervisor. 

  • How can I contact a stock broker?

    Contacting a stock broker is very simple. You may visit their offices or send an email to contact an account executive. They can offer advice and make market transactions based on the investor’s instructions. 

  • How can I acquire a product or service?

    Contact our sales area by sending an email to 

  • Who is responsible for publishing the market bulletin?

    The market bulletin is created by the Operations area of Santiago Exchange, and provides a daily, monthly and quarterly summary of events that occurred in each market that exist on Santiago Exchange. 

  • Where does Santiago Exchange operate?

    The exchange operates in a historical building in downtown Santiago, at the intersection of Bandera Street, the Union Club and Nueva York and La Bolsa streets. Its address is La Bolsa 64, Santiago. 

  • What is the settlement process?

    The settlement process includes settling outstanding balances and clearing the positions of participants and clients in CCLV, under the principle of delivery upon payment. The process consists of delivering securities and cash from participants and clients with net debit balances and net sales positions to complete their transactions and of transferring securities and cash to participants and clients with net credit balances and net buying positions, provided the parties fulfill their obligations. 

  • What benefits do we offer?

    Leader in the domestic market, comprehensive and robust market infrastructure. We offer diverse financial instruments, comprehensive services to assist your business in 360 degrees and over 121 years of experience in capital markets. 

  • What is a material event?

    A material event is a report the SVS provides to the market and the community with all the relevant information of overseen entities from the stock market and insurance market, among others. All entities registered in the Securities Registry must disclose accurate and timely information about their businesses and securities, where "material" is understood to be all information considered relevant to investment decisions of individuals. 

  • Who can be equity issuers on Santiago Exchange?

    Corporations that are registered on the SVS Securities Registry and have submitted an application to list their shares to trade on Santiago Exchange along with the information requested in the Issuer Rights and Obligations Manual. 

  • What are stocks?

    Stocks are equity instruments issued by corporations representing ownership of a fraction of a company’s assets. The buyer of a stock becomes a shareholder or an owner of part of the issuing company. 

  • Who can be fixed-income issuers on Santiago Exchange?

    Corporations that are registered on the SVS Securities Registry, have registered their securities with the SVS and have submitted an application to register their securities or a letter that authorizes Santiago Exchange to trade the instruments issued. The application must be accompanied by the information requested in the Issuer Rights and Obligations Manual. 

  • What are settlement conditions?

    Settlement condition corresponds to the date of the transaction settlement. It can be a normal settlement (contado normal or CN) if the transaction settlement takes place two trading days after the executed transaction (i.e. T + 2); next day (pagadero mañana or PM) if the settlement is one trading day after the transaction is executed (i.e. T + 1); and same day (pagadero hoy or PH) if the settlement is executed on the day of the transaction (i.e. T + 0). 

  • What are the benefits of being an equity issuer?

    There are multiple benefits of issuing shares. One of the main benefits is access to larger amounts of funding for an indefinite period of time. In addition to having an ongoing company valuation, becoming a regulated entity earns the company prestige. Moreover, separating management from company ownership brings new perspectives to management. 

  • What does it mean when a stock has liquidity?

    Liquidity is the measure of how quickly a security, in this case a stock, can be converted into cash and can be measured through indicators such as: 


    • Traded volumes of a particular stock. 

    • The market presence of the security, defined as the number of days in which transactions over UF1,000 are recorded during the last 180 trading days, and 

    • The number of shares that are traded compared to the total number of shares outstanding (known as the stock turnover index). Stocks that have high traded volumes, significant market presence and high turnover will be more liquid than stocks that have lower levels of these indicators. 


  • Where can I find information on methodologies to calculate stock indices?

    The Prices and Statistics section of Santiago Exchange’s website < href=>( contains a list of the exchange’s stock indices. Each index has information about its value and an explanatory document that contains key aspects of the company including shareholder composition, among other facts. By clicking on the name of the index, a page opens detailing the calculation methodology of the selected index. 

  • What are benchmarks?

    Benchmarks are reference indices used to follow market evolution or to measure the performance of an asset or portfolio. It is ultimately a basis for comparison and evaluates the performance of an asset. 

  • Where can I find information about Santiago Exchange’s products?

    The Products and Services section of the website contains information about all the products offered by Santiago Exchange. Additionally, you can contact the exchange directly at 

  • What is market capitalization?

    Market capitalization is the value obtained by multiplying the share price by the number of total shares of the company. It provides an estimate of the market value of the company’s assets. 

  • What is free float?

    Free float refers to the percentage of a company’s total shares that is available to be freely and regularly traded on a stock exchange and is not owned by controlling shareholders. It can be used as a proxy to measure market size or the value of all stocks that are freely available for trading by investors. 


  • Why invest in an investment fund?

    Investment funds invest in a diversified portfolio of different instruments. They are targeted towards high-net-worth investors and institutional investors, as the minimum investment in these instruments is usually high. 


    These investments are a savings alternative for the short, medium, long or indefinite term, depending on investment goals. 


  • How are investment funds traded?

    They are trade on Santiago Exchange through the electronic system Telepregón HT, using trading stations. These instruments are settled under normal conditions T + 2, (i.e. two trading days after the completion of the transaction). 

  • What is an investment fund?

    Investment funds are composed of contributions from individuals and corporations to invest in securities and assets as defined by Law No. 18,815. These contributions are denominated in investment fund shares of equal value and characteristics and cannot be redeemed until the fund is liquidated. 

  • What are the characteristics of investment funds in terms of liquidity, return and risk?

    Liquidity: The liquidity of an investment fund is related to how quickly an investor can either buy or sell the instrument while maintaining the market price of the instrument. 


    Return: the return or profitability of an investment fund comes from dividends received and capital gains generated by the difference in price at the time of purchase and sale. 


    Dividends depend on the fund’s profits and to the extent that the dividends are ongoing, the investor will have a steady stream of dividends over time. Unlike corporations, investment funds must annually distribute dividends of at least 80% of net profit earned during the year. Net profit is defined as the amount resulting from subtracting total losses and expenses accrued in the period from profit, interest, dividends and gains actually received. 


    Risk: investment funds rates are essentially variable and may increase or decrease based on the behavior of a number of factors including political, economic and financial factors, etc. The higher the risk assumed, the greater the required return should be (i.e. higher-risk investments are penalized with higher rates. 

  • How are different types of funds classified?

    There are three types of funds: Financial Asset, Real Estate and Private Equity. 

    Financial asset funds invest solely in financial instruments, primarily in Central Bank and treasury instruments, stocks, letters of credit, bonds and time deposits, among others. 


    Real estate funds generally invest in urban real estate, endorsable mortgages and stocks of real estate companies. 


    The objective of private equity funds is to invest in small and medium enterprises in order to finance growth. Private equity funds, depending on their respective investment policies, may invest in businesses at various stages of development, such as at inception (seed capital and venture capital) or at growth stages (capital development) and or may even purchase a fully consolidated company (buyout funds). 


  • What mechanism is used by companies listed on Santiago Exchange to trade their shares in the United States?

    For local shares to be traded in the United States, companies must issue ADRs. ADRs are certificates issued by a U.S. depositary bank, to be traded on the U.S. stock market. 


    Each certificate represents a certain number of shares of a Chilean company and provides an alternative to issuing shares directly in the U.S. market. 


  • What index represents ADRs shares?

    The INTER-10 is an index reflecting the performance of the top 10 Chilean shares that trade ADRs on the NYSE, and, in turn, have a high market presence and traded volume in the local market. 


    This index is intended to reflect the performance of shares with ADRs. The selection criteria for the INTER-10 includes the most traded shares of the IPSA that also trade ADRs as of the review date. 


  • In what currency do foreign securities trade?

    According to the rules governing the Foreign Market of Santiago Exchange, securities of foreign issuers can be listed and settled in dollars or Chilean pesos. The issuer or its sponsor defines the foreign instruments to be traded in Chilean pesos. 

  • What is NYSE?

    NYSE (New York Stock Exchange) is the main stock market in the United States and has the largest number of listed companies. 

  • What is a securities issuer?

    Issuers are companies looking to grow and fund their businesses through a public offering on the stock market, for which they issue securities for placement and trading on the exchange. 


  • What parties are involved in transactions with ETFs?

    The parties involved in transactions with ETFs are: 


    Exchange: provides the platform for listing and trading the fund. 


    Fund manager: responsible for managing the fund and replicating the performance of the benchmark asset, as well as creating and redeeming the ETF shares. 


    Authorized agent: agent that can create and destroy ETF shares and minimum lots of ETFs, interacting directly with the fund manager. 


    Market maker: broker who plays an important role by providing liquidity to a financial product through the daily buying and selling of shares. Most of the time it is also an authorized agent. 


  • In what currency do foreign securities trade?

    According to the rules governing the Foreign Market of Santiago Exchange, securities of foreign issuers can be listed and settled in dollars or Chilean pesos. The issuer or its sponsor defines the foreign instruments to be traded in pesos. 

  • What is an index?

    Indices are an average of the prices of a portfolio of shares representing a market, calculated as the weighted average of each stock’s market capitalization. Indices provide an overview of market behavior and serve as a benchmark to compare the performance of different financial instruments. 

  • What is the primary market?

    The primary market is the market in which financial assets are issued and sold for the first time. Once issued, they can be traded in the secondary market. These securities are issued, for example, by the government, the Chilean Central Bank, banks and financial institutions, mutual funds, corporations and other debt issuers. 

  • What does return refer to?

    Return is an indicator that measures economic gain. It is measured by comparing the current value of assets to the value of the economic resources used to obtain them. 

  • Does the settlement process involve physically delivering monetary instruments?

    Yes, the settlement of monetary instruments is done bilaterally with physical delivery of both gold/silver and dollars. 

  • What does it mean that the fluctuation of gold is countercyclical?

    When prices fall in the more traditional markets, such as the equity and bond markets, investors seek refuge in less volatile assets, such as gold. As a result, when there are large variations or lows in the markets, demand for anticyclical assets, such as gold, increases. 

  • What types of dollar instruments are traded on the currency market?

    In the currency market, three types of dollars are traded. They differ by type of settlement: 

    - DOLAR: Settlement is made in banknotes or coins.  

    - DOLARS: Settlement is made with checks issued by a commercial bank in Chile. 

    - DOLARN: Settlement is made with checks issued by a commercial bank in New York. 

  • What instruments are traded on the gold and silver market of Santiago Exchange?

    Gold and silver coins minted by the Chilean Central Bank are traded on Santiago Exchange. 

  • How can companies raise funds on the exchange?

    Companies have a number of options to meet their financing needs when implementing a growth plan, undertaking a specific project or simply restructuring liabilities. Among the financing options with third parties, the most used are financing through capital (i.e. raising capital by issuing new shares) and financing through debt issuance. 

  • What does it mean that the debt market is short, medium or long-term?

    Financial instruments in the debt market can be identified as short, medium or long-term according to the terms of the issuance. In general, the longer the term, the higher the expected returns. 

  • What does it mean that a money market instrument is not serialized?

    MMI instruments are not serialized because they are short-term, one-time issuances. 

  • How are Fixed Income Instruments classified?

    Fixed-income instruments are classified by: 


    1) Fixed rate: Instruments whose coupon interest rate is fixed. 


    2) Floating rate: Instruments whose coupon interest rate varies according to an established parameter. 


  • How are Money Market Instruments classified?

    Money market instruments are classified by: 


    1) Non-indexed or nominal: Instruments whose rate is expressed in Chilean pesos at 30 day rates. 


    2) Indexed: Instruments whose rates are denominated in any currency other than the Chilean peso (UF and dollar are the most common) whose rates are expressed in 360 day terms. 


  • What is a derivative?

    Derivatives are financial assets, whose main characteristic is that their market value is based on the price of another asset (i.e. they are financial instruments whose value depends on the value of an underlying asset). The underlying assets most used by the derivatives are stocks, stock indices, fixed-income instruments, exchange rates, interest rates and commodities, among others. 

  • What are the advantages of having a derivatives market?

    Some of the advantages of having a derivatives market are: 

    • Liquidity: As evidenced by more mature capital markets, a derivatives market generates an increase in market liquidity of the underlying assets. 

    • Investment Flow: The project represents a major boost for the local market, bringing our capital market not only to local investors, but also to a large number of foreign investors, through order routing to the derivatives markets. 

    • Regulation: Law 20,544 on Taxation of Derivatives, enacted in October 2011, defines the tax framework for the operation of structured derivatives markets, outlining that income generated by foreign investors is not subject to capital gains tax. 

    • Opportunities: Derivatives market instruments offer the chance to broaden the range of products and business opportunities to the different market institutions, both for investment and for hedging. 

    • Trust: The participation of the CCLV Central Counterparty ensures the compliance of transactions in the market, avoiding the financial costs associated with the use of lines between participants and eliminating counterparty credit risk. 


  • What is BM&FBOVESPA?

    BM&FBOVESPA is the acronym of a private, open company created in 2008 due to the integration of the São Paulo Stock Exchange (BOVESPA) and the Commodities and Futures Market (BM&F). 


    Bovespa operates as a trading center for shares, securities and contracts of financial assets, indices, interest rates, commodities and currencies, with future and immediate/spot settlement options. In Brazil, it has offices in São Paulo, Rio de Janeiro, Rio Grande do Sul, Paraná and Ceará. 


  • What is an underlying asset?

    In the options and futures market, an underlying asset is the financial asset (stocks, bonds, stock index or other financial asset) subject to a standard contract traded on the market. 

  • What is an investment portfolio?

    A portfolio, also known as an investment or securities portfolio, is a combination of financial assets in which one invests. An investment portfolio can consist of a combination of fixed-income instruments, equities, derivatives, etc. 

  • How is the MILA managed?

    MILA is managed by an Executive Committee composed of the chairmen or CEOs of the participating exchanges and depositories, four sub-committees each with a leader to manage commercial, legal, operational and technological matters, and the MILA general secretary, whose task is to coordinate and monitor the MILA initiatives to comply with mandates of the Executive Committee. 

  • Does belonging to this market mean that each country loses its autonomy over its exchange?

    No, one of the MILA’s key features is that no market loses its independence or regulatory autonomy and grows in conjunction with the integrated market, given how the markets complement one another. 

  • What system do MILA countries use to trade?

    MILA countries negotiate directly from their own trading systems to reach all other countries: Lima (Elex), Santiago (Telepregón), Bogota (Xtream) and Mexico (NSO MILA). 

  • In what currency are trades on MILA made?

    All MILA negotiations are done in local currency through local intermediaries without currency having to leave their countries, which further facilitates international transactions through this tool.  

  • What is the role of the DCV?

    The DCV is the Central Securities Depository, sole custodian of securities in Chile. Its function is to safeguard public securities, both domestic and foreign, which are traded in the market, and to facilitate the transfer of ownership of such securities through debit and credit mechanisms to the accounts held by the depositors in the DCV. It is also responsible for managing the securities in custody, notifying when charges are made and maturities reached and giving information to investors. The DCV is also the entity authorized by law to accurately register dissolved issuances.  

  • What does “number of trades” mean?

    The number of trades is the quantity of operations or transactions of a given market instrument. 

  • What is market presence?

    Market presence considers securities that, at the time of determining market presence, have an adjusted presence greater than or equal to 25% or have a "market maker" acting in accordance with SVS General Regulation No. 327. To calculate the adjusted presence, only the days with transactions greater than or equal to UF1,000 over the last 180 trading days are taken into consideration (SVS General Regulation No. 327 of January 17, 2012). 

  • How is the number of trades determined?

    The number of trades is based on the transactions carried out by different financial institutions on trading systems provided by Santiago Exchange. 

  • What is real-time market participation?

    Real-time market participation refers to the dynamic and continuous updating of market share. In other words, market share and participation graphics are synchronized and what happens in the trading systems of Santiago Exchange is displayed minute by minute. 

  • What does the acronym ISIN stand for?

    ISIN stands for International Securities Identification Number, which uniquely and internationally codes and identifies a security or instrument. 

  • To whom do trading hours apply?

    Trading hours apply to all persons involved in the trading of different assets in the financial market, Santiago Exchange, including stockbrokers, banks, insurance companies, pension funds and individuals, among others. 

  • Why do trading hours change in the summer?

    The trading hours of Santiago Exchange change in summer to align the local market with the trading hours of U.S. markets. 

  • What are repos?

    Repos, also known as simultaneous operations, are repurchase operations where a financial institution sells an asset with an agreement to repurchase the asset at a determined price within a set time. 

  • Do U.S. holidays influence trading in the Chilean market?

    The Chilean market operates normally during U.S. holidays.  

  • What is an “Emerging Enterprise Market”? ‎

    The Emerging Enterprise Market is a stock market segment within the equity market of Santiago Exchange oriented to emerging companies. In this market, companies increase their resources to fund their needs for expansion and development of new businesses and projects. 

  • What is an “Emerging Enterprise”?

    “Emerging” enterprises are: 

    - New or recently-organized companies that seek funding for an innovative business plan. 

    - Companies in high-tech segments. 

    - Fast-expanding companies or with high growth potential projects that inevitably require a capital increase to obtain funding. 

  • Which conditions must a company fulfill to be registered with the “Emerging Enterprise Market” of the SE? ‎

    In order to be listed on the SE, companies must: 

    - Submit a registration certificate with the Securities Registry of the Superintendency of Securities and Insurance. 

    - Submit copies of contracts with at least one Sponsor and one Market Maker. Such contracts must set forth the rights, obligations and economic terms and conditions derived from the relationship between the parties. 

    - Make a capital increase of at least 10% of issued shares. 

    - Shareholders registered before the new issue and in charge of the company’s management cannot dispose of the company’s control for a 6-month period computed as from the date of registration with the SE and the placement of the new stock issue. 

    - They must conduct at least one road show a year for market participants. 

  • What are the steps to be followed by a company to become listed on the “Emerging Enterprise Market”? ‎

    1. Contact a Sponsor: To evaluate the feasibility of the company going public and its subsequent registration with the Emerging Enterprise Market of the SE. 

    2. Register with the Securities Registry of the Superintendency of Securities and Insurance. 

    3. Draft the contracts with the Market Maker and Sponsor. 


    5. Stock placement: Through a Placement Agent that may be the Market Maker or the Sponsor, or any other entity authorized to act as placement agent of securities in the market. 

  • What is the role of the Market Maker of the “Emerging Enterprise Market”? ‎

    It is in charge of preserving the liquidity of the securities of the companies listed on the Emerging Enterprise Market. This is fulfilled by quoting buy and sells bids during trading hours with a view to generating liquidity and continuity in the transactions of the relevant instrument. The Market Maker must be a Broker of Santiago Exchange. 

  • What does the Capital Gains Tax exemption mean for investments in this Market?

    It means that any investment in a stock of companies listed on the Emerging Enterprise Market are exempt from paying the tax on the capital gains they achieve when they sell these stocks in the market. This benefit was established for a term of three years up to 2006 to encourage the greater participation of investors in this segment. 

  • What is a Sponsor? ‎

    A Sponsor is an entity that supports the company in its relationship with the market by providing guidance for drafting the reports required for registration with the Securities Registry of the Superintendency of Securities and Insurance, for registration with SE, and for complying with the regulations governing the Exchange Market. They are entities specialized in the processes of listing companies on SE, such as Brokers, Banks and their branches, as well as companies specialized in financial consulting and advisory activities. 

    One same entity may simultaneously act as the Sponsor and Market Maker of a company wishing to become an issuer in the Emerging Enterprise Market. 

  • What is the Futures Market? ‎

    The Futures Market is a market in which participants enter into contracts setting forth their obligation to buy or sell, at a future date, a given number of goods (commodities, currency and financial instruments), at a value specified at the time of negotiation. 

  • What instruments are traded on the Futures Market of Santiago Exchange? ‎

    Standardized dollar contracts are traded in amounts of United States dollar 10,000 each. The quotation fluctuates based on the day-to-day values of the observed dollar published by the Central Bank of Chile. 


    Contracts are also negotiated based on the Selective Stock Price Index (IPSA) and the value of each contract is equivalent in pesos to each day’s index multiplied by 2,000. In this way, if the level of the IPSA index is 150, the value of each contract will be 150 x 2,000 = $ 300,000. The quotation of this contract directly depends on the fluctuations of the IPSA index. 


  • How can I invest in the Futures Market? ‎

    You need to contact a Broker of Santiago Exchange with whom you will enter into a contract accepting the regulations of this particular market. Then, buy or sell orders are issued indicating the number of contracts and the price at which you are willing to enter the market. The investor must pay an initial margin equivalent to a fixed percentage of the value of the contracts. This margin may consist in different instruments, for instance: money, term deposits, gold, etc. 



    In the futures markets, losses or profits can occur on a daily basis based on price changes in the market. Losses are required to be covered the day following the occurrence and profits can be collected. 

  • What are the characteristics of the Futures Market instruments from the point of view of liquidity, profitability and risk?


    Liquidity: It primarily depends on the partaking of participants in the market, who have their relevant counterparty. This condition is guaranteed in this market by contract standardization. 

    Profitability: Two economic agents can be distinguished in this market.. 

    Hedgers: They are investors seeking to cover themselves from the risks involved in the price changes of a given asset. The most common example is the Exporter or Importer who sells or buys future contracts in dollars to guarantee a given rate of exchange in order to obtain an adequate yield from its business. Thus, these agents minimize their risks as they are already hedged by simultaneously taking part in the futures and spot markets.. 

    Investors: They are investors who are not hedged by a position in the asset negotiated under the contract, and their participation in the market entails assuming the entire risk for future price changes.  


    In this case, profitability only becomes known when the contract is settled. 

    Risk: This variable is linked to the above-mentioned agents. Hedgers fully cover themselves from the risk of price changes whereas investors assume the risk associated to price changes. 


  • What are Money Market Instruments?

    For stock exchange purposes, Money Market Instruments (FII) are short-term debt instruments (with terms usually under one year).  


    Money Market Instruments are issued to finance an issuer’s short-term (up to one year) management or as monetary management instruments. 


    From the buyer’s perspective, these instruments are a saving alternative that allows benefiting from short-term interest rate fluctuations. 


  • Which Money Market Instruments are currently traded on Santiago Exchange? ‎

    Money Market Instruments can be classified into private and government securities.  


    Government securities include:  

    - Discountable Promissory Notes of the Central Bank and Readjustable Promissory Notes of the Central Bank (PDBC and PRBC) 


    As their names suggest, they are instruments issued by the Central Bank of Chile to regulate money supply through open market transactions. There is a primary market exclusively formed by financial entities that regularly take part in promissory note auctions organized by the issuer. In the secondary market, these promissory notes are traded by the financial institutions themselves.  



    - Treasury Discountable Promissory Notes and Treasury Readjustable Promissory Notes (PDT and PRT) 


    They are issued by the Chilean Treasury to obtain funding for the entity’s operational management. The primary market of these instruments is formed by financial institutions and qualified investors that may participate in the weekly auctions organized by the Treasury. Since they are in bearer form, PDTs and PDRs may be freely transferred on the secondary market. 


    Private securities include: 


    - Private securities include: 


    They are issued by banking institutions and financial companies to obtain short term funding. These instruments are placed directly or through an intermediary among individuals and legal persons interested in their purchase. They may be readjustable or not and their minimum term of issue is 30 days. 


    - Commercial Papers 

    Known as corporate notes, they are instruments issued by companies expressly authorized by the Superintendency of Securities and Insurance to raise funds directly from the public to finance the issuer’s short term operations (working capital). They may be readjustable or not and their minimum term of issue is 30 days. 

  • What are the characteristics of Money Market Instruments in terms of liquidity, return and risk? ‎

    - Liquidity: 

    FII are single-issued securities that enable the financing of short-term operations. These two characteristics should be born in mind when analyzing their level of liquidity. 


    First, the single-issued aspect facilitates the continued launching of new securities into the market and, second, the terms for which they are issued provide for their continuous turnover. Due to their nature, FIIs are highly liquid and this ensures that there will always be favorable conditions for their disposal and acquisition. 



    - Return: 

    The level of short-term interest rates is the primary factor conditioning the return that may be obtained from investments in FIIs. 


    In Santiago Exchange, the rate applied to government instruments is usually lower than the one applied to private instruments, as the public tends to discriminate in terms of each issuer’s risk. 



    - Risk: 

    Investing in FIIs implies assuming the risk of issuer’s payment default. In the case of government securities, this risk is deemed almost inexistent; however, in the case of private securities, the risk acquires significance and other factors need to be analyzed to determine the actual risk being assumed. It is important to establish if the issuer has created any security interests or if the issue is covered by some sort of government insurance in order to quantify the maximum loss likely to be incurred in the event the issuer defaults on its payment. 

  • What are stocks? ‎

    Conceptually, stocks are equity securities issued by corporations representing the ownership of a portion of issuer’s equity; this means that the buyer of a share or shareholder becomes the owner of a portion of the issuing corporation. 


    From the point of view of the company issuing the shares, they are a financial alternative to obtain funds for an indefinite term, while from the stockholder’s point of view; stocks are a saving alternative in the short, medium or long term, depending on the reasons behind the purchase. 


  • How many classes of stock exist? ‎

    Based on the different rights granted, stocks may be classified in common and preferred. 


    - Common stocks are issued for an indefinite term and grant all the rights mentioned in the previous item. 


    - Preferred stocks, by contrast, grant certain privileges in relation to common shares that are effective for a definite term. This does not entitle the holder to demand the payment of dividends other than from the company’s operations, or to have multiple votes at general stockholders’ meetings. 


    Based on how they may be transferred, stocks are classified into registered and bearer. 


    - Registered shares are issued to the name of a specific holder and their transfer is made through a duly signed notice that both the buyer and the seller must give to the company so as to have the relevant stockholder’s record book updated. Bearer stocks are those whose certificates are not issued to any specific person and, therefore, their transfer is made through physical delivery. 


    Chile’s Corporations Act only authorizes the issue of registered stock. 

  • What rights are obtained upon the purchase of a stock? ‎

    When you become a shareholder of a corporation, you acquire certain rights, such as: 


    - To share in the corporate profits: The stockholder may share in the corporate profits through the dividends distributed from time to time. 


    - To share in the corporate stockholder’ equity upon liquidation: If the company is liquidated, the stockholder has the right to share in the remaining stockholders’ equity after all outstanding obligations with third parties have been fully discharged. 


    -Preemptive right: Every time a company issues new shares, they must be first offered to the current shareholders pro rata (in proportion) to their respective holdings, so as not to alter each stockholder’s share in the total capital stock. 


    - Right to say and vote: Stockholders may express their opinions and exercise their voting rights at stockholders’ meetings, which may be general or special depending on the business to be transacted. 


    - Withdrawal right: Stockholders in disagreement with any action approved at the stockholders’ meeting may exercise the right to withdraw from the company following payment by the company of the value of their stocks and subject to certain pre-established legal conditions. 



  • What are the reasons to buy stocks? ‎

    The reasons can be two fold: 


    - Profitability 


    - Control 


    In the first case, the basic reason to invest is the income earned during a given period of time. This income may derive from changes in prices and/or dividends. The profit produced by price changes is called capital gain and, in most cases, it is the main constituent of the profitability achieved in the equity market. Dividends also play a part in profitability as they are regular distributions made by corporations of the profit achieved in a specific year. 


    The second reason behind the purchase of stock is related to the possibility of getting the control of a company through the purchase of significant capital stock in the market. This is more permanent in nature than the previous one as you may become a member of a company’s board of directors and thus participate in its decision-making process. 

  • What are the characteristics of stocks in terms of liquidity, return and risk? ‎


    Stock liquidity is related to the greater or lesser simplicity with which any given investor may buy or sell that paper on the market. Liquidity is a relative concept as it cannot be clearly established when a paper is or not liquid; however, it is possible to compare the degree of liquidity between different stocks through certain parameters, such as: 


    - Traded volumes 

    - Presence (trading days vis-à-vis the total business days of the period) 

    - Turnover (traded stocks vis-à-vis the total number of outstanding stocks). 


    Thus, heavily traded stocks with a high presence and turnover will be more liquid than other stocks with more moderate levels. 

    During times of high market buoyancy, stock liquidity tends to increase, particularly in the case of companies whose capital is distributed among a significant number of shareholders. 



    The return on equity derives from the dividends earned and from the capital gains generated by the price differences at the time of buying and selling. Dividends depend on the corporation’s results and, to the extent they are positive and permanent, the shareholder will be able to receive a stable flow of dividends over time. 


    The evolution of the price of a stock has been the subject matter of several theories, among them, the ones propounded by the Technical School and the Fundamental School. The former is rooted in the historical behavior of stock prices as a legitimate factor to predict the future, using charts as the basic analytical instruments. The latter explains that market quotations can be projected through the analysis of the corporation’s economic and financial data, its particular segment and the overall economic context. 


    In any event, it is important to bear in mind that in a healthy economy, returns on equity will always be higher than the returns on other choices, like fixed income instruments, because the risks involved in each alternative differ. 



    Any investment in the exchange market entails a risk, moreover if it is an investment in the equity market. Stock prices are essentially variable and may fluctuate following the behavior of a set of political, economic, financial and other factors. Expectations play a major role in the volatility of prices and, in many cases, when these expectations move from a personal to a collective level, they form the positive or negative trends observed in the market. 


    Investing in equities means taking on a risk that must pay off in one way or another so that resources are not deviated to other more secure alternatives that would prevent companies from being funded though this system. The key element of investing in equities is the expected profitability or return. 


    The higher the risk assumed, the higher the return to be demanded; this means that high risks are penalized by demanding equally high rates of return. 

  • Which companies can list their stocks on SE?

    Not all corporations or partnerships limited by shares must list their stock on SE. Under the Securities Exchange Act, only the so-called publicly-held companies are bound to do so, that is, companies with 500 or more shareholders or with at least 10% of their subscribed capital being held by a minimum of 100 shareholders; nonetheless, the so-called privately-held companies can voluntarily register their stock with the Securities Registry and become listed on SE. 

  • What other obligations must be fulfilled by listed companies? ‎

    Following registration of their stock with the Securities Registry, issuers must submit an application for listing that, once approved, will bind the company to fulfill specific requirements that will determine its permanence in the Stock Exchange.  

    - Systematically provide financial and operating information. 

    - Provide timely information on shareholders’ meetings and changes in capital. 

    - Specify any investments in other companies. 

    - Provide information on the company’s insolvency and dissolution. 

    - In general, it must report on any basic fact that may affect the listing of its stocks on the equity market. 

  • Which are the different stock indices used by Santiago Exchange?

    Santiago Exchange publishes three types of stock indices for listed stocks:  


    - General indices: IGPA, IPSA and INTER-10. 


    - Equity indices: IGPA Large, IGPA Mid and IGPA Small. 


    - Sector indices: they group companies by market sectors: Banking, Commodities, Communications and Technology, Construction & Real Estate, Consumer Goods, Industries, Retail and Utilities. 

  • What is the IPSA Index? ‎

    The IPSA (Selective Stock Price Index) is the selection of the 40 companies with the highest amounts traded on Santiago Exchange, weighted on a quarterly basis, whose market capitalization exceeds USD 200 million (the Observed Dollar rate on the portfolio review date is used for currency conversion purposes). 


    The IPSA index is designed to measure the results of the most liquid Chilean companies listed on Santiago Exchange. It is deemed to be the best indicator of the Chilean stock market results. The market cap. of the companies grouped under the IPSA index amounts to USD 211.774 million, currently accounting for 70.53% of the aggregate market capitalization of all the companies listed on the Exchange. The list of companies is stable and stocks are actively traded, which results in a low company turnover rate and a high liquidity level.  

  • What is the IGPA Index? ‎

    The IGPA Index (General Stock Price Index) is the selection of companies whose annual traded volume on Santiago Exchange exceeds UF 10,000 and whose stock market presence, as of the portfolio review date, is equal to or higher than 5%.  

    It is the oldest market index as it dates from 1954, and has since been one of the main indicators of the Chilean stock market. The market capitalization of the companies grouped under the IGPA is equal to USD 266,308 million, currently accounting for 88% of the capitalization of all the companies listed on Santiago Exchange. The index currently groups 113 companies.  

  • What is the IGPA Large Index? ‎

    The IGPA Large index comprises the companies with the highest market capitalization in the Santiago Exchange. The portfolio selection is based on each company’s relative share of the total equity of a sub-portfolio within the IGPA, defined as Equity Portfolio. The IGPA Large index currently groups 17 companies whose market capitalization amounts to USD 171,970 million and accounts for 57% of the market capitalization. IGPA Large index companies must have a stock market presence equal to or higher than 25%. 

  • What is the IGPA Mid Index? ‎

    The IGPA Mid index includes companies whose market capitalization is equal to or higher than 25%. The portfolio selection is based on each company’s relative share of the total equity of a sub-portfolio within the IGPA, defined as Equity Portfolio. It currently groups 21 companies whose market capitalization amounts to USD 50,346 million and accounts for 17% of the market capitalization. 

  • What is the IGPA Small index? ‎

    The IGPA Small index includes companies whose market capitalization is equal to or higher than 25%. The portfolio selection is based on each company’s relative share of the total equity of a sub-portfolio within the IGPA, defined as Equity Portfolio. It currently groups 50 companies whose market capitalization amounts to USD 25,169 million and accounts for 8% of the total market capitalization. 

  • What is the INTER-10 Index? ‎

    The Inter-10 Index was created in the mid 90s to show the performance of the main Chilean stocks listed on foreign markets through ADRs that are, at the same time, major players in the domestic market. The market capitalization of the INTER-10 index’s companies amounts to USD 79,856 million, accounting for 27% of the total market capitalization and 42% of the IPSA index’s companies. All the companies included in this index are leading companies in their respective industries with widely-known brands. The 10 stocks with the highest annual weighted traded volumes that fulfill the above conditions are selected. 


  • What are Sector Indices? ‎

    The Sector indices comprise companies with an Adjusted Stock Market Presence equal to or higher than 25% as of the date of ascertainment. In the event of companies that have gone public during the year under review, the Adjusted Stock Market Presence is computed based on the last 120 business days. 


    In relation to the series of shares, if any two or more series meet the first requirement, only the series having the highest free-float adjusted market capitalization will be considered. 


    The selected companies are allocated to the different sector indexes based on the industry where 50% or more of the company’s assets are concentrated. Once the allocation is made, the Exchange verifies if the relevant industry belongs to any of the existing sectors. 


    If two or more companies provisionally allocated to the same sector bear an ownership relationship such that the investment of the first company in the second one accounts for 50% or more of the first company’ assets, the company with the lowest free-float adjusted market capitalization will be excluded from the sector index. 


  • What are investment funds? ‎

    Investment funds are pools of funds formed by the contribution of individuals and legal entities for investing in the securities and goods contemplated under Act No. 18.815. These contributions are represented by registered units of like value and characteristics that cannot be redeemed before the Fund is liquidated.​ 

  • What are Investment Fund Units? ‎

    Conceptually, Investment Fund Units are equity instruments representing a portion of an investment fund’s equity, that is, the buyer of a unit or investor becomes the owner of a portion of such trust. 

    From the point of view of the investment fund administrator issuing the Investment Fund Units, they are the means to obtain the necessary resources to invest in the securities and goods contemplated under Act No. 18.815 and the trust’s internal regulation, whereas, from the point of view of the investor, the units are a short, medium, long or indefinite term savings alternative, depending on the reasons that led to the purchase.​ 

  • What are the characteristics of Investment Fund Units in terms of liquidity, return and risk? ‎

    Liquidity: The liquidity of an Investment Fund Unit is related to the greater or lesser speed with which a given investor can buy or sell this instrument, preserving its market price. 

    Return: The return or profitability of an Investment Fund Unit derives from the dividends received and from the capital gains produced by the price differences at the time of buying and selling. 

    Dividends depend on the profits achieved by the trust and, to the extent they are positive and permanent, the investor will be able to receive a stable flow of dividends over time. Unlike corporations, the investment fund must annually distribute at least 80% of its net profit for the year as dividends. Net profit is the amount resulting from discounting the total losses and expenses accrued during the period from the earnings, interest, dividends and profits actually achieved.  

    Risk: The prices of Investment Fund Units are basically variable and can go up or down depending on the behavior of a set of political, economic and financial factors, among others. The higher the risk assumed, the higher the return to be demanded; this means that high risks are penalized by demanding equally high rates of return. 

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