How to trade on MAB
The Alternative Investment Market (MAB) facilitates small cap companies a simple and efficient access to the market. It is a platform designed for small businesses with expansion projects that can benefit from the advantages of the market This market is characterized by:
- A multilateral system of trading operated by the stock exchanges, promoted by BME and supervised by the CNMV
- Aimed al institutional investors and individuals. It provides financing, visibility, liquidity and valuation.
- It has an information and recruitement regime adapted to the singurarities of this type of companies.
- Platform of learning or launch towards the stock market for the companies that reach the appropriate dimension.
In addition to the Companies in Expansion, in the MAB other types of companies are listed as:
- 2006 MAB to SICAVS
- 2007 MAB to risk capital entities
- 2008 MAB to companies in expansion
- 2013 MAB to SOCIMI
Companies wishing to join MAB must be public limited companies that are selling products or services, or have advanced relevant actions, and that meet the requirements of transparency, information and incorporation.
The MAB has adapted all the existing procedures so that these companies can be listed in the market, but without giving up an adequate level of transparency. For this we have introduced the figure of Registered Adviser, specialized professionals to help companies throughout the process, from the Incorporation to the market until the day to day of their quotation. The Registered Adviser is the link between the companies that decide to start their journey in the MAB and BME as market manager.
This market has a custom regulation, designed specifically for companies, and with costs and processes adapted to their characteristics. The MAB has a Regulation. The supplementary rules of this Regulation are stablished in the Circulars and Operating Instructions that the multilateral trading system approves accordance with the Regulation.
¿Why List in MAB?
The Alternative Stock Market (MAB) is suitable for small companies and a suitable platform to promote the growth of the same. The MAB offers greater access to finance and a real alternative to traditional banking. The capital increase, coinciding with its going in to the market, is a great way to obtain own funds to support the expansion of a company. In addition, the market facilitates the company’s access to a large institutional investment community, both national and international, that relies on the project represented by the company and Shares with it the goal of maximizing profit.
The shares of a company traded on a market have a target value, market value or market price of the company. The MAB incorporates the expectations of growth and benefits in the valuation of listed companies, as well as other variables external to it.
The market offers investors liquidity that makes it compatible to combine their investment horizon with the permanent financing of the company. The companies listed in the MAB have the figure of the Liquidity Provider who offers buy and sell positions during the market session to facilitate a constant liquidity of value.
Quoting on a market brings to the company solvency, transparency and prestige. Prestige that is not only recognized by investors, but also by customers, suppliers or financial partners of the company. The consequences are therefore relevant: strengthening the commercial position, improving relations with suppliers, customers, banks, so on… The image of the company is improved by the continuous advertising that the market provides and which has its echo in the media.