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What is the Alternative Stock Market in Spain?

 

The Alternative  Stock MarkeSudeste Asiáticot (MAB)  is a market dedicated to companies with small capitalization which are seeking to expand. That market has a regulation, designed specifically for them, and costs and processes adapted to their characteristics.

This system is adapted to specific companies characterised by their size and stage of development, which have large financing needs to put in value their business and to improve its competitiveness with all the tools that a stock market puts available. The MAB provides alternative financing to grow and expand.

The flexibility of this market means adapting all existing procedures for these companies to be listed  on a market but without refusing  an adequate level of transparency. For this reason a new notion has been  introduced, the “registered counselor“, whose mission is to help companies to comply with the reporting requirements.

Additionally, companies will have a “liquidity provider” or a broker to help them find the necessary counterpart to the formation of its share price as efficiently as possible, while he is providing liquidity. However we must emphasize that the companies listed on the MAB, for its size, will have differents characteristics in terms of liquidity and risk in comparison with the ones you would find listed in the stock market.

Companies applying for inclusion in the MAB should be public limited company, Spanish or foreign companies, which have their registered capital fully paid and represented by book entries, with free transferability of its shares and marketing of its products or services. The accounting and financial reporting system must fit with the national standard, International Financial Reporting Standards (IFRS) or U.S. GAAP.

The companies that want to get access to the MAB must meet the following requirements:

Transparency: The required level of transparency implies a deep change in the mentality of the shareholders, in the governing bodies and forms of action.

Information:  Making a commitment to supply information required by the MAB.

Registered Adviser and Liquidity Provider:  Appoint an Advisor to help them both outside and during their stay in the market, and signing a contract with a provider of liquidity to facilitate trading.

 

Source: Expansión

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Author Spotlight

Emilio Aranda Molina

Emilio Aranda Molina

My name is Emilio Aranda Molina. I am 27 years old and I am from Spain.

I held the bachelor of Law and Business Administration from Granada University and master of International Business Administration from CECO and ICEX. Currently I am working in Trade Office of the Spanish Embassy in Beirut to help national companies to trade beyond Spain.

I have been studying abroad in year 2009/2010 in United Kingdom at University of Strathclyde (Glasgow) Read Full

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