Capital Market
Set of mechanisms that play a role of allocation and distribution available to an economy, capital resources, risks, control and information associated with the process of transferring savings into investment.
Stock Market
It is the segment of the financial market that mobilizes resources (mainly medium and long term), since those sectors with liquidity (savers or investors) towards productive activities (enterprises, financial sector, government) through the sale of securities.
Market Structure
• Intermediated Market
The transfer of savings to investment is made through intermediaries such as banks, financial corporations, mutual funds, etc..
Types of Markets
- Primary Market: The first sale or disposal of securities made by the issuer in the market.
- Secondary Market: The transfer of ownership of assets already placed in the Primary Market. It is the essence of the Securities Market.
Capital Market Products
· Foreign Exchange: Spot and Forwards
· Market Equity Shares
Forex Market
• Spot trades: When delivery of currencies takes place within a maximum of two days. The price resulting from operations is the daily exchange rate and the value of the representative market rate calculated daily.
• Forward ( orward). Those in which the delivery of the currency is higher, in general, two business days prior noticing the exchange rate of the transaction. Its main function is the hedging rate.
Bonds
They are securities that incorporate an aliquot of a collective credit recorded by a company or an entity subject to the inspection and supervision of the government.
They can be issued by any entity prior authorization. The title must contain the word "bond", the date of issue, provided the law of circulation, the issuer name, serial number, face value, premium performance and signature of the legal representative.
Title of Private Debt
• Corporate bonds, bonds issued in securitization processes.
Title of Public Debt
Is the internal debt of the State with natural or legal persons at the national level, which has been contracted primarily through the public stock market. The government bond market is the buying and selling of securities in either the primary or secondary market or through a stock exchange or OTC market.
Equity Market
It is the capital of a company divided into equal parts. The holder of an action is a shareholder and has rights against society.
Derivatives market
These are financial assets in which there is no physical delivery and are therefore not a simple trading transaction.
Commodities
Commodities are raw materials essential for the global economy, as they constitute an important part in the production of other goods.
Why Invest In Commodities
Commodities are assets that every day consolidated into the portfolios of investors around the world. Investing in Colombian commodities do very specific way, for example, only through the National Agricultural market for agricultural commodities. Internationally investment in commodities is done through specialized international exchanges like Chicago or London Metal Exchange.
OTC Market
It is a parallel counter market, over-the-counter (OTC) market or unorganized market as contracts. It is one where financial instruments (stocks, bonds, commodities, swaps or credit derivatives) directly between two parties negotiate. This type of trading is performed outside the scope of organized markets.
Agricultural Commodities & Biofuels
In particular, agricultural commodities are those commodities of vegetable origin obtained by cropping. It is the second most produced commodity in the world, with 10% of the global production, after the energy 76 %. The precious and industrial metals form 9% of GDP and commodities with the lowest proportion of GDP are livestock.
Coal
This type of mineral has special features that make it the best choice when considerable amounts of energy are required. Combustion allows movement of large turbines which in turn generate the energy needed to power electricity to cities or large industrial complexes chemicals, cement and paper, among others.
Oil
Oil is a strategic and special commodity because the variations in prices have had a significant impact on the global economy. As a scarce natural resource, reserves are not distributed according to the needs of consumption, making industry and oil market activity global reach, with a major, volatile and intense international trade. Private and state companies engaged in the exploration, mining and export of crude oil and those who buy it to turn it into products (gasoline, naphtha and diesel) are the foundation of the world oil market.
Fuels
The refineries process crude oil into different products, such as gasoline, jet fuel, asphalt and other products. The most basic process of refining crude oil separates into its various components. The crude oil is heated and placed in a distillation tower, where the various hydrocarbon components are boiled off and recovered and condensed at different temperatures.
Diesel Fuel
It is used in diesel engines found in most trucks, trains, buses, boats, agricultural vehicles and construction engines. Feed engines we use to produce and transport almost all our food and all other products we make and buy. Some cars, small trucks and boats also have diesel engines.
Gost 305-82
The GOST 305-82 is the Russian variant for D2/Gasoil, this diesel is characterized by its sulfur content of 0.02 MAX, according to the ISO standard GOST (Gosudarstvenny Standart). The ANSI standard considers the GOST 305-82 "ultra low sulfur" as it retains 0.2% (2000 ppm).
EN590
EN590 standards describe physical properties (described by the ISO) that must have the Ultra Low Sulphur Diesel for the European Union, Croatia, Iceland, Norway and Switzerland.
The EN590 according to ISO standards emissions described by European emissions regulations, is considered an "Ultra Low Sulphur Diesel" and quality specified in EN 590 (Sulphur: 0.001 MAX). While these specifications are not mandatory, they are observed by all fuel suppliers in Europe.
Mazut
Mazut a heavy low quality fuel used in power generating plants and similar applications. In the U.S. and Western Europe, mazut is blended or broken down, with the final product that is diesel. The Mazut-100 is a fuel that is produced under the GOST (Gosudarstvenny Standart) specifications, for example GOST 10585-99. Mazut is almost exclusively manufactured in the Russian Federation, Kazakhstan, Azerbaijan and Turkmenistan. The most important thing is to qualify the fuel sulfur content.
Jet Fuel
Jet fuel or aviation turbine fuel (ATF) is a fuel designed for use in engines powered by gas turbine aircraft.The most commonly used fuels for commercial aviation are Jet A and Jet A-1, produced under a standardized international specifications. The other commonly used fuel for commercial aviation is Jet B which is used for its better performance in cold weather.
Jet A - Jet A-1
The Jet A specification fuel has been used in the United States since the 1950s and is generally not available outside the United States and some Canadian airports like Toronto and Vancouver, while Jet A-1 is the standard fuel used in the rest of the world. Both Jet A and Jet A-1 have a flash point above 38 ° C (100 ° F) with an auto-ignition temperature of 210 ° C (410 ° F).
Jet B (JP-54)
Jet B is a naphtha-kerosene fuel is used to generate better performance in cold weather. However, the composition Jet B is Lighter makes it more dangerous to handle. For this reason, it is rarely used except in very cold climates. A mixture of approximately 30% kerosene and 70% gasoline, this fuel is known as full cut.Has a very low freezing point of -60 ° C (-76 ° F) and a low flash point. It is mainly used in the United States and some military aircraft.
Natural Gas
The main ingredient in natural gas is methane, a gas consisting of a carbon atom and four hydrogen atoms. Million years ago, the remains of plants and animals (diatoms) decayed and built in thick layers. To this decaying organic matter, over time, they covered the sand and silt, becoming stone. Pressure and heat changed part of this organic material into coal, oil and natural gas.
Liquefied Petroleum Gas (LPG)
LPG is a mixture of light hydrocarbons recovered in the oil refining process, composed mainly of butane and propane in various proportions, which are usually of the order of 60% butane and 40% propane.
The LPG are petroleum hydrocarbons. His name, liquefied petroleum, coming from turning in the gaseous state which is liquid at atmospheric pressure by compression and cooling, requiring 273 liters of LPG vapor to obtain 1 liter of liquid LPG.
Unlike the LPG (Liquefied Petroleum Gas) which is obtained from the distillation of petroleum, LNG (Liquefied Natural Gas) comes directly from the oil fields, alone or accompanied by oil. And usually has a composition of methane (85%), ethane (10%) and propane (5%).
Aluminium
Aluminum is the third most abundant in Earth's crust after oxygen and silicon element and represents 7.3% of its mass.
Aluminum began to be produced commercially in the second half of the nineteenth century by which it can be still considered a young material, in comparative terms, considering that mankind has used copper, lead and tin for thousands of years. However, the production of aluminum today amount exceeds the sum of the remaining non-ferrous metals such as copper, lead and tin.
Gold
The gold market is not centralized only in the buying / selling of physical gold or its derivatives called "futures" are traded on the stock exchange. This is a huge market. And only through the LBMA agency is one of the most important markets based in London, is traded daily gold value greater than the cost of the oil consumed every day around the world, ie, 87 million barrels (8.7 billion dollars if we calculate the price of 100 USD / barrel). There is a huge paper gold market and imaginary movable price regardless of the status of the physical market. And that's not all. According GATA (Gold Antitrust Action Committee), banks sold gold based on the fractional system. GATA assumed that was sold around 50,000 tonnes of imaginary physical gold.
IFO 380
The IFO (Intermediate Fuel Oil) is a member of the group of residual fuels used by tankers in the international market marine fuel.
UREA
The fertilizer of urea, also known as carbamide, is the most important nitrogen-containing fertilizer. It is a crystalline organic chemical compound white containing about 46 percent nitrogen. It is a natural waste formed by the metabolism of proteins in humans and other mammals, amphibians and some fishes.Synthetic urea is produced commercially from ammonia and carbon dioxide. It is widely used in agriculture, both as fertilizer and animal feed additive, which makes its production is considerably high compared to other fertilizers. In the United States, approximately one million pounds (454,000 kg) of urea is produced each year.
Asphalt
Asphalt is a viscous, sticky and black colored material used as a binder in asphalt mixtures for the construction of roads, highways or freeways. It is also used in waterproofing. Is present in crude oil and composed almost entirely debitumen. Its name recalls the Lake Asfaltites (the Dead Sea) in the Jordan River Basin.
Barite
Barite is a barium sulphate, sulphates having an anionic group of sulfur and 4 oxygens. The coordination is tetrahedral. Its name comes from barys Greek, meaning heavy. It is easy to identify mineral because of its great weight because similar minerals are more lightweight, it is also known as heavy spar because of its high density.
Copper
One of the important transition metals and nonferrous metal. Its usefulness is due to the combination of chemical, physical and mechanical properties, and their electrical properties and abundance. Copper was one of the first metals used by humans.
Tantalum - Coltan
It's found in the mineral tantalite. Tantalum is known as a rare transition metal, has a great metallic shine, resists corrosion very well, is very hard and has a grayish blue. Is a physiologically inert element so that is used for various applications.
Iron & Steel
According to information from the U.S. Geological Survey (USGS) global iron ore reserves amount to 160 billion tons of ore, equivalent to about 79 billion tons of iron content
Paymaster
A paymaster is someone appointed by a group of investors or the government to distribute commissions, fees or salaries in the private sector or the public sector.
INCOTERMS Rules
'international terms of trade. "Are terms of three letters each reflecting the standards of voluntary acceptance by both parties, buyer and seller-about the terms of delivery of goods, products. Are used to clarify the costs of international business transactions, defining responsibilities between buyer and seller and reflect current practice in the international freight.