Market Closed 09-19-2019 09:58 AM GMT -03:00
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.
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.
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.
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.
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.