12 Pros and Cons of the Colombian Stock Exchange (2023)

The Colombian exchange occurred as Christopher Columbus introduced concepts of mercantilism to the New World. As he sailed across the Atlantic, he brought horses, sugar crops, and other "modern" produce with him. The aim was to bring potatoes, chocolate, tobacco and sugar back to the domestic market.

As part of the exchange, he also introduced disease to the New World, negating some of the benefits that came with the trade.

When two previously unknown cultures collide, the outcome of the event is unpredictable. We have historical reviews to help with the ins and outs of the Colombian Stock Exchange. In 1492, Christopher Columbus had no such luxury.

List of professionals of the Colombian Stock Exchange

1. Columbus introduced new technologies from the Old World.
Two of the most important tools introduced by Christopher Columbus' voyages to the New World were the compass and the navigation chart. These devices helped him find the quickest possible routes when visiting places outside of his homeland. This process could then be used by the native tribes to more effectively navigate on land. Everyone involved could be sure that they were going in the right direction.

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2. Livestock was introduced by the Colombian Stock Exchange.
The tribes in the New World were primarily hunter-gatherers. Consumption of protein came either from plant sources such as legumes or from what the tribes could gather from their hunting activities. When the Old World arrived on their doorstep, they brought with them various livestock options for the tribes to farm themselves. Cattle, pigs, sheep and horses were all incorporated into tribal life over the course of the century following Columbus' visit. Grains such as barley have also been introduced to reduce food insecurity problems.

3. The stock market helped produce new commodities from the useless soil.
In the early days of the New World, before European colonies settled in America, many of the fields were native grasses. Growing food took a lot of extra energy. By providing cattle and other livestock, the tribes were able to turn these fields into pastures for milk and meat production.

The animals traded on the stock exchange were also used for skins and tallow, with the products fetching high prices when exported to Europe. Despite the challenges involved, these trades began to improve the standard of living of the native tribes, and they were readily adopted by the Columbus years.

4. The food supply in Europe benefited from the exchange.
Because of the Colombian exchange, the potatoes and corn grown in the Americas provided better food supplies for the European continent. This led to an improvement in the average diet of people, including a lower cost of food. After the first few years of exchange, average life expectancy in Europe increased rapidly, fewer children died before their first birthday, and population growth eventually helped fuel the colonization effort that led to the formation of the United States.

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5. Crops brought in by the Colombian Stock Exchange are still being grown.
When Columbus introduced the Old World to the New World in the late 15th century, he brought with him sugar cane and bananas that could be grown in the tropical Caribbean climate. The plantations grew rapidly and provided better access to food in the short term.

In the long term, many of these crops are still grown as lucrative commodities. Even potatoes grown in the New World were considered a healthy alternative to those grown in Europe at the time.

List of disadvantages of the Colombian Stock Exchange

1. The diseases spread by Columbus decimated the New World.
Although Christopher Columbus did not always intend to spread diseases with his exchange platform (this would jeopardize his profits), germ warfare does not care about personal intentions. The diseases common in Europe were uncommon in North America and the Caribbean. Basic human contact between the two groups meant smallpox and other diseases spread rapidly.

An example of this problem concerns the Taino tribe. When Columbus came to visit in 1492, there were 250,000 people there. By 1517 only 14,000 survivors remained. Up to 90% of the local population were killed by the spreading diseases.

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2. The native tribes also transmit diseases to the Europeans.
History often recalls the ills that Columbus and the Europeans shared, but it wasn't a one-way street. Visiting the New World, crews were exposed to syphilis, tuberculosis, and several other extremely contagious diseases. These were then taken back to the Old World, where they spread across the ocean just as quickly as smallpox and others. like dr As OMRF's Stephen Prescott puts it, "Whether we celebrate Columbus Day or not, we should all celebrate how far our immune systems have come."

3. Columbus had a shameful first thought: slavery.
After Columbus met the Arawak people in the Bahamas in 1492, he made several observations about the encounter in his journal. He found that they were willing to trade anything they owned. He talked about how they were built with good bodies and had fine features. "With 50 men," Columbus wrote, "we could subdue them all and make them do as we please." He even admitted to forcing some tribesmen into slavery to learn more about this part of the world Experienced.

In 1495 Columbus returned to round up 1,500 people to bring back to Spain as slaves. About 200 people died during the journey, and it was all done under the guise that God had ordained the actions.

4. The Columbus exchange had harsh consequences for people who disobeyed.
Gold was a prime requirement for Columbus when he visited the New World. It helped fund his business ventures and brought him into the favor of royalty. Believing that there were vast goldfields in Haiti, he and his crew ordered all men ages 14 and older to collect a certain gold ration every quarter. If they didn't meet their quota, Columbus' hands would be chopped off. Since gold was scarce there, most of the natives were hunted down and killed by the crews.

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5. Humans were not the only creatures affected by disease.
Animals were also affected by the spread of germs during the Colombian exchange. The cattle brought by Christopher Columbus primarily attacked the alpacas and llamas, which were used extensively in America. Rats would catch rides on passing ships, infesting the Caribbean islands with each visit and disrupting local food supplies. Even chiggers were introduced during the exchange, creating a new threat from an insect that could cause serious infection.

6. Native populations were forcibly indoctrinated.
Even if the native tribesmen were lucky enough to escape the slavery purges that brought thousands of people to Europe, they were still held in servitude at home. The Spaniards set up a system called "encomienda". This gave Europeans a responsibility for a certain number of natives. They were forced to teach the natives how to speak the Spanish language and elements of the Catholic Christian faith in order to maintain the scholarship they received. To maintain this relationship, the native tribesmen had to pay tribute, often in the form of labor or gold.

7. Invasive organisms entered the New World.
The Colombian Stock Exchange is notable for the rats that stumbled upon it, but it must also be remembered for the grasses and weeds introduced. These plants quickly took over fields, crops and forests to create environmental problems in the New World. The Old World couldn't escape this problem either, as gray squirrels stowed away on ships while a new potato fungus ravaged European crops.

The pros and cons of the Colombian stock exchange are important for three particular reasons: it set the stage for the modern shape of the world; it was a brutal time for the local population; and history is usually written through the eyes of the victors. Remember the lessons of these encounters to prevent them from happening again.

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Blog post author credentials
Louise Gaille is the author of this post. She received her B.A. in economics from the University of Washington. In addition to being a seasoned writer, Louise has nearly a decade of banking and finance experience. If you have any suggestions on how to improve this post then go hereContact our team.


What are the pros and cons of stock market? ›

Investing in the stock market can offer several benefits, including the potential to earn dividends or an average annualized return of 10%. The stock market can be volatile, so returns are never guaranteed. You can decrease your investment risk by diversifying your portfolio based on your financial goals.

What are the cons of stock exchange? ›

Disadvantages of investing in stocks Stocks have some distinct disadvantages of which individual investors should be aware: Stock prices are risky and volatile. Prices can be erratic, rising and declining quickly, often in relation to companies' policies, which individual investors do not influence.

Is Colombia a good country to invest in? ›

Colombia also actively promotes and encourages foreign investment by maintaining a robust legal system, an open economy, and a variety of investment incentives. Potential investors enjoy benefits that include: A stable investment environment.

What are the pros of stocks? ›

  • Stocks typically have potential for higher returns compared with other types of investments over the long term.
  • Some stocks pay dividends, which can cushion a drop in share price, provide extra income or be used to buy more shares.

What are 3 benefits of stocks? ›

Stocks can be a valuable part of your investment portfolio. Owning stocks in different companies can help you build your savings, protect your money from inflation and taxes, and maximize income from your investments.

What are the pros and cons of stock dividends? ›

The Pros & Cons Of Dividend Stock Investing
  • Pro #1: Insulation From The Stock Market. ...
  • Pro #2: Varied Fluctuation. ...
  • Pro #3: Dividends Can Provide A Reliable Income Stream. ...
  • Con #1: Less Potential For Massive Gains. ...
  • Con #2: Disconnect Between Dividends & Business Growth. ...
  • Con #3: High Yield Dividend Traps. ...
  • Further Reading.
Nov 23, 2022

Why should you invest in Colombia? ›

Colombia offers attractive investment opportunities

Thanks to its competitive costs of human talent, raw materials, distribution, and production factors, Colombia offers an ideal location for manufacturing production.

Is Colombia financially stable? ›

Colombia's economy has recovered vibrantly from the COVID-19 crisis supported by a bout of consumption that had been repressed during the pandemic. GDP rebounded 10.7 percent in 2021 and it is projected to grow 7.1 percent in 2022.

What are the advantages of doing business in Colombia? ›

Colombia is also a relatively open, free market economy, with several free trade agreements with partners such as the United States and the European Union. Furthermore, having ports on both the Pacific and Atlantic Oceans makes the country a strategic location to do business.

What are 5 cons of investing? ›

There are many pros to investing in stocks, but some drawbacks can make you think twice about investing.
Cons of investing in stocks
  • Costs. ...
  • Volatility. ...
  • Lack of control. ...
  • Information risk. ...
  • Liquidity risk. ...
  • Counterparty risk.
Oct 5, 2022

What are the pros and cons of buying individual stocks? ›

Pros and Cons of Individual Stocks

The biggest selling point and pro of buying individual stocks is the potential for outsized gains beyond average market performance. It's also the biggest con because there's also potential for huge losses if the company performs poorly.

What are the pros and cons of bonds? ›

Bonds have some advantages over stocks, including relatively low volatility, high liquidity, legal protection, and various term structures. However, bonds are subject to interest rate risk, prepayment risk, credit risk, reinvestment risk, and liquidity risk.

What are the main risks of stocks? ›

But there are no guarantees of profits when you buy stock, which makes stock one of the most risky investments. If a company doesn't do well or falls out of favor with investors, its stock can fall in price, and investors could lose money.

How much was $10000 invested in the stock market in 1980? ›

A $10,000 investment in 1980 would have increased to about $1,030,000 at the end of 2020. Note, this period includes over 10,000 trading days and assumes the individual stayed fully investor. If an investor missed only the 10 best days in the market, their total return would have been less than half.

Which stock is best for long term? ›

best long term stocks
S.No.NameCMP Rs.
1.EKI Energy1097.15
2.Tips Industries1614.25
3.Easy Trip Plann.51.55
4.Share India Sec.1252.10
23 more rows

What are the 3 main factors that affect stock? ›

In summary, the key fundamental factors are as follows: The level of the earnings base (represented by measures such as EPS, cash flow per share, dividends per share) The expected growth in the earnings base. The discount rate, which is itself a function of inflation.

What are the cons of stock dividends? ›

Con: Double Taxation

Some experts criticize dividend producing stocks because dividend payments are taxed twice. Taxes are paid by the corporation and you, the investor, must pay personal income tax on dividends earned over the course of a given tax year.

What are the 3 benefits of dividend? ›

Five of the primary reasons why dividends matter for investors include the fact they substantially increase stock investing profits, provide an extra metric for fundamental analysis, reduce overall portfolio risk, offer tax advantages, and help to preserve the purchasing power of capital.

What is a major disadvantage of receiving stock dividends? ›

Drawback No. 2: Your stocks may not grow as much as you'd like. Companies that pay dividends make the decision to share some of their profits with their stockholders. That might seem like a good thing at first glance, but any time a company pays a dividend, that money isn't being reinvested in the business itself.

What is a good investment in Colombia? ›

Colombia offers great investment opportunities in manufacturing industries, for example in the automotive and textile sectors. The latter enjoys world recognition for its great quality and durability.

What are the top 3 things to invest in? ›

12 best investments right now
  • High-yield savings accounts.
  • Certificates of deposit (CDs)
  • Money market funds.
  • Government bonds.
  • Corporate bonds.
  • Mutual funds.
  • Index funds.
  • Exchange-traded funds (ETFs)
Dec 19, 2022

What is Colombia's main source of income? ›

Colombia has a thriving market economy based primarily on oil, mining, agriculture, and manufacturing.

Is Colombia one of the poorest country in the world? ›

Colombia is a member of several international organizations, including the Organization of American States and the United Nations. Colombia is classified as an upper middle-income economy and is one of Latin America's largest economies, according to the International Monetary Fund.

What are 5 facts about Colombia? ›

  • Colombia is the Second Most Biodiverse Country in the World. ...
  • Colombia is the #1 Most Biodiverse Country in Birdlife. ...
  • Colombia is #1 in Emerald Exportation. ...
  • Coffee Lover's Rejoice!! ...
  • Colombia is Often Voted One of the World's Happiest Countries. ...
  • Colombia is #2 in Flower Exportation.
Feb 4, 2021

How good is Colombia's economy? ›

Colombia's economic freedom score is 65.1, making its economy the 60th freest in the 2022 Index. Colombia is ranked 12th among 32 countries in the Americas region, and its overall score is above the regional and world averages. Economic growth turned seriously negative in Colombia in 2020 but rebounded in 2021.

What are the advantages of Colombia? ›

  • Ports on two oceans.
  • Large population (almost 50 million people)
  • Plentiful natural resources (coffee, oil and gas, coal, gold)
  • Significant tourism potential.
  • Large foreign direct investment level.

What is Colombia's comparative advantage? ›

Analysis shows that Colombia has comparative advantages in apparel relative to the rest of the world (comparative advantage index of 1.9). Analysis shows that textiles and apparel have competitive positions in the US market (Relative Commercial balance above 0.8, Specialization index above 0.1).

How much money do you need to make a month to live comfortably in Colombia? ›

Most expats can live very comfortably between $900 to $2000 per month for ALL living expenses.

What are 4 common investment mistakes? ›

  • Buying high and selling low. ...
  • Trading too much and too often. ...
  • Paying too much in fees and commissions. ...
  • Focusing too much on taxes. ...
  • Expecting too much or using someone else's expectations. ...
  • Not having clear investment goals. ...
  • Failing to diversify enough. ...
  • Focusing on the wrong kind of performance.

What are the 3 D's of investing? ›

Diversification. Dividends. Discipline. Christopher Quinley, CFP®, CIMA®, AAMS®, the co-founder of Liang & Quinley Wealth Management, says that one of his key tips for financial health is to invest using the three Ds: diversification, dividends, and discipline.

What are three common mistakes of investing? ›

  • Chasing performance, fear of missing out, and focusing on the negatives are three common mistakes many investors may make.
  • History shows investors who overreact to near-term market events typically end up doing worse than if they stuck to their long-term plan.
Nov 7, 2022

What are the pros and cons index funds? ›

The benefits of index investing include low cost, requires little financial knowledge, convenience, and provides diversification. Disadvantages include the lack of downside protection, no choice in index composition, and it cannot beat the market (by definition).

What are pros and cons of mutual funds? ›

Mutual Funds: An Overview

Some of the advantages of this kind of investment include advanced portfolio management, dividend reinvestment, risk reduction, convenience, and fair pricing. Disadvantages include high expense ratios and sales charges, management abuses, tax inefficiency, and poor trade execution.

What are the cons of bonds? ›

Some of the disadvantages of bonds include interest rate fluctuations, market volatility, lower returns, and change in the issuer's financial stability. The price of bonds is inversely proportional to the interest rate. If bond prices increase, interest rates decrease and vice-versa.

What are the cons to bond funds? ›

The disadvantages of bond funds include higher management fees, the uncertainty created with tax bills, and exposure to interest rate changes.

What are the pros of bond? ›

Investors buy bonds because: They provide a predictable income stream. Typically, bonds pay interest twice a year. If the bonds are held to maturity, bondholders get back the entire principal, so bonds are a way to preserve capital while investing.

What are the dangers of stocks? ›

But there are no guarantees of profits when you buy stock, which makes stock one of the most risky investments. If a company doesn't do well or falls out of favor with investors, its stock can fall in price, and investors could lose money.

Is stock market good for beginners? ›

The Indian Stock Market is a great place to start investing your money, especially for beginners. It offers an excellent opportunity for people who want to get into the market without having to worry about the technicalities of buying and selling stocks. The stock market in India offers many advantages to investors.

Is it good to invest money in stock market? ›

Today, investing in stocks can be considered as one of the best ways to generate long term wealth. With a strategic investment plan, any investor can achieve their long term financial goals with the help of the stock market. However, stock investment does not come without its fair share of risks.

Is buying stocks a good idea? ›

If you have some savings to invest, feel ready to buy stocks and don't need the money for at least five years, then yes, jump in. Even when the market has lows, if you're invested for the long term, you'll have time to recover losses.

What are the 4 main risks of investing? ›

4 real risks of investing (and what to do about them)
  • Your securities could lose value when you need to liquidate. At some point, your investments will lose value. ...
  • Your portfolio could underperform over time. ...
  • You could get overconfident. ...
  • You could lose confidence. ...
  • Facing risk.

What is the riskiest type of stock? ›

Equities are generally considered the riskiest class of assets. Dividends aside, they offer no guarantees, and investors' money is subject to the successes and failures of private businesses in a fiercely competitive marketplace. Equity investing involves buying stock in a private company or group of companies.

What is the biggest risk in the stock market? ›

Market risk

The fear of price fluctuations may be the one risk that keeps most would-be investors from actually investing. The prices for securities, commodities and investment fund shares are all affected by price fluctuations.

What is the best thing to invest in? ›

Almost everyone should own stocks. That's because stocks have consistently proven to be the best way for the average person to build wealth over the long term. U.S. stocks have delivered better returns than bonds, savings accounts, precious metals, and most other investment types over the past four decades.

Which stocks to buy for 5 years? ›

Best Stocks to Buy in India for Long Term for 2023
  • Reliance Industries. Multinational Conglomerate.
  • Tata Consultancy Services (TCS) Information Technology.
  • Infosys. Information Technology.
  • HDFC Bank. Banking.
Jan 12, 2023

What is a good first stock to buy? ›

Here are nine of the best stocks to buy for a starter portfolio:
  • Berkshire Hathaway Inc. (ticker: BRK. B, BRK. A)
  • Apple Inc. (AAPL)
  • Microsoft Corp. (MSFT)
  • Alphabet Inc. (GOOG, GOOGL)
  • Coca-Cola Co. (KO)
  • Costco Wholesale Corp. (COST)
  • AT&T Inc. (T)
  • Amazon.com Inc. (AMZN)

Can I become a millionaire by investing in stock market? ›

While this is quite difficult to achieve, it is definitely not impossible. There have been many cases in the modern world where investors have become rich through their investments in stock markets.

What are the top 10 stocks to buy right now? ›

Top 10 Stocks To Buy Right Now
  • Amazon.com, Inc. (NASDAQ: AMZN)
  • The Walt Disney Company (NYSE: DIS)
  • Palo Alto Networks, Inc. (NASDAQ: PANW)
  • The Boeing Company (NYSE: BA)
  • Prologis, Inc. (NYSE: PLD)
  • Johnson & Johnson (NYSE: JNJ)
  • MercadoLibre, Inc. (NASDAQ: MELI)
  • Costco Wholesale Corporation (NASDAQ: COST)
Dec 1, 2022

What time of day is best to buy stocks? ›

The opening 9:30 a.m. to 10:30 a.m. Eastern time (ET) period is often one of the best hours of the day for day trading, offering the biggest moves in the shortest amount of time. A lot of professional day traders stop trading around 11:30 a.m. because that is when volatility and volume tend to taper off.

Is it worth buying 100 shares of a stock? ›

A lot of less than 100 shares is called an odd lot; odd lot transactions generally have greater commission costs associated with them. Financial professionals advise having enough money to buy a round lot of shares in one company. Many discount brokers require that you trade at least 100 shares of stock at a time.

Do stocks pay you? ›

The company's board of directors approve a plan to share those profits in the form of a dividend. A dividend is paid per share of stock. U.S. companies usually pay dividends quarterly, monthly or semiannually. The company announces when the dividend will be paid, the amount and the ex-dividend date.

What are the best stocks to invest in 2022? ›

Top 10 performing stocks in the S&P 500 in 2022
TickerTotal return in 2022
Hess Corp.HES94.1% 94.1% 94.1%
Exxon Mobil Corp.XOM87.4% 87.4% 87.4%
Marathon Petroleum Corp.MPC86.6% 86.6% 86.6%
Schlumberger NVSLB81.2% 81.2% 81.2%
6 more rows
Jan 14, 2023


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