The Warsaw Stock Exchange is a capital market located in the capital of Poland and was founded by the State Treasury (State Ministry of Finance).
It has a similar operation to others such as the Madrid Stock Exchange or the Bombay Stock Exchange. Savers, seeking profitability, buy shares, debentures, bonds and other financial instruments from companies and states seeking financing.
Therefore, we find ourselves with an orderly and regulated market that allows and promotes economic development. It offers the possibility of putting in contact, with certain guarantees, those who need money with those who are willing to offer it, in exchange for a return.
History of the Warsaw Stock Exchange
Here are some of the most important events in the history of the Warsaw Stock Exchange.
- In the Middle Ages, some member cities of the Hanse league were important economic centers in Poland. This attracted merchants from Europe, who created a market for their notes and currency.
- The first exchanges of values took place in the stage known as the Polish-Lithuanian Commonwealth.
- The minutes of negotiation have a record since 1757.
- Warsaw became the capital and financial center of Poland in the early 17th century.
- In 1808 the commercial code that regulated this market appeared. The Napoleonic wars delayed the implementation of a stock market in the country.
- In 1817 the first organized stock market appears, «Warsaw Mercantile Exchange» by a ducal decree.
- The Warsaw Mercantile Exchange grew during the First World War, unlike other European exchanges, which stagnated.
- Polish stock markets, already in the country’s second republic, suffered the consequences of the 1929 crisis, but by 1930 they had already recovered from its effects.
- With the German invasion (1939), all stock exchanges were closed.
- The Warsaw Stock Exchange began its activity as it is known from 1991.
- In September 2008, the British index provider FTSE recognized it as an advanced emerging market.
- In 2017, this same index already considers it a fully developed stock market.
Characteristics of the Warsaw Stock Exchange
Below, we show some of the characteristics of this stock market.
- The fundamental legal framework is made up of the Capital Market Supervision Law, the Financial Instruments Trade Law, the Public Offering Law and the Commercial Companies Code of 2000.
- On the other hand, within that same legal framework and more specifically, we have the Statutes, the Rules and the Rules of the Stock Exchange Court.
- It is a joint-stock company with 35% capital participation by the Ministry of the State Treasury of the Republic of Poland. This, moreover, was its founder.
- Stocks, bonds, derivatives, shares in indices or subscription rights are bought and sold in its financial market.
- In the raw materials market, spot and installment contracts are signed, both for electricity and natural gas, as well as carbon emission rights.
- Electronic commerce has been essential for its development. First thanks to the WARSET platform, until 2013, and later, through UTP, which replaced the previous one.
- There are three types of sessions, the previous ones from eight to nine in the morning, the normal ones until ten minutes to five in the afternoon and the later ones. Of course, it is closed on Saturdays, Sundays and previously declared holidays.
- The General Meeting of Shareholders is its main authority. In turn, it is supervised by the Supervisory Board, whose council meets once a quarter.
- The operations are managed by the Board of Directors and it is in charge of deciding what is negotiated and how.
- Its main indicator is the Warsaw Stock Exchange Index (WIG20) and includes the 20 companies with the largest capitalization.
- In addition, there are fifteen general and sectoral indices, the oldest being PELUCA.
Most relevant economic data
To finish, as an example, we have included an evolution of the WIG20, in the last 30 days. In addition, the table also shows the variation rates (negative in red). On the other hand, we show the line graph of the evolution of the index and said rates.
We can highlight four data on the Warsaw Stock Exchange. On the one hand, two maximums, one of the WIG20 on February 9, 2022 and another of its variation rate on the 24th of that same month. Regarding the two minimum values, we have that of the WIG20 on February 24, 2022 and that of its variation rate on the 23rd of that month.