Stock exchanges: NYSE, Nasdaq, Mexico's BMV and BIVA, and the SIC

A stock exchange is where people who want to buy shares meet people who want to sell them. A century ago it was a room full of shouting traders; today it is an electronic system that matches millions of orders per second. The exchange does not decide prices: it only sets the rules and connects buyers with sellers.

The two big US exchanges

• NYSE (New York Stock Exchange). The largest exchange in the world by the value of its listed companies. Its origin goes back to 1792, when a group of brokers signed an agreement under a tree on Wall Street. Companies such as Coca-Cola, Ford and Pfizer are listed there.
• Nasdaq. Born in 1971 as the first electronic stock market, it became home to many technology companies: Apple, Microsoft, Palantir, Robinhood and Moderna.

For you as an investor the difference barely matters: the hours are the same and you can buy on both with the same account.

Mexico's exchanges

Mexico has two exchanges: the Bolsa Mexicana de Valores (BMV), with roots in the 19th century, and the Bolsa Institucional de Valores (BIVA), which started operating in 2018. Mexican companies such as Walmex, Grupo México and Cemex are listed there, and they also work as a gateway to foreign stocks.

The SIC: US stocks in pesos

The International Quotation System (SIC) lets you buy, in Mexico, in pesos and through a Mexican brokerage, stocks and ETFs listed abroad. It is what apps such as Hey Banco, GBM or Kuspit use to offer US stocks. Some things worth knowing:

• You pay in pesos, but the asset is in dollars. The SIC price follows New York's price multiplied by the exchange rate, so the value of your investment also moves with the dollar. See the exchange rate and your investments.
• The symbol can differ. It is almost always the same, but not always: SentinelOne is S in New York and S1 in the SIC. This site shows it as «S (S1)».
• Watch the buy and sell prices. Some SIC listings trade less than in the US, and the gap between the price you buy at and the price you can sell at (the spread) can be wider. Limit orders help you avoid overpaying.
• Hours and days. The SIC trades during the Mexican exchanges' hours, which are adjusted to match New York. If the Mexican exchange closes for a Mexican holiday, you cannot buy on the SIC even if New York is open. More in stock market hours.
• Simplified taxes. Gains from selling SIC stocks have their own tax treatment in Mexico; see taxes on US stocks from Mexico.

Brokerage and custody

To buy you need an authorized intermediary: a brokerage firm or a bank with an investment service. It receives your order, sends it to the exchange and holds your shares in your name (custody). Before opening an account, check that the institution is supervised by Mexico's National Banking and Securities Commission (CNBV); you can look it up in its registry of supervised entities.

What matters to get started

• The exchange only connects buyers and sellers; supply and demand set the prices.
• From Mexico you can buy US stocks in pesos thanks to the SIC, through a regulated brokerage.
• Your investment is in dollars even though you pay in pesos.