Valorización

Valorización is a economic concept originating from Latin American countries, particularly from Argentina. It refers to a process where individuals, usually set by the state, assign an official value or rate to publicly traded assets, such as bonds, shares, and other financial instruments. This process aims to establish an equilibrium price for these assets on the secondary market, even when the primary market rates are not available or are not representative of the real value of the assets.

The main goal of valorización is to transfer undervalued assets, often as a result of past government policies or lack of information, to investors at what the government considers a fair value. This is usually done to attract new investors and investment funds into the secondary market, promoting market stability and liquidity. However, critics argue that valorización can result in negative consequences, such as de facto nationalization of assets, as investors may receive compensation below market value.

Valorización involves complex calculations and methodologies, and it has been a topic of controversy in various jurisdictions. The process often requires the intervention of regulatory bodies and the independent valuation of asset by acknowledged experts. In recent years, the concept has gained attention from researchers and policymakers worldwide, as they attempt to understand the theoretical implications of valorización on market dynamics and the role of the state in regulating financial markets. Its use remains a subject of ongoing debate, with different approaches emerging in various countries.