To start I will list several concepts:
1 – The stock exchange is a place where you negotiate pieces of business.
2- It is a place where you can win and lose money.
3 – “It’s pure gambling”, “It’s casino”, ” the Only shark makes money”.
4- “It’s that thing that appears at the end of the Journal”
5 – It is something that is called “market” and that only has speculator inside.
Etc etc etc … etc … etc …
Myths, legends, non-education, dishonesty, academic proselytism, bad behavior, prejudices, ignorance, envy, barbarism and many more adjectives of this set of the worst adjectives is what exists in the heads of millions of Brazilians, almost all. The bag is totally misunderstood and becomes a myth of evil in the minds of the people, fueled by populist politicians (which are not they?) And some bought journalists.
The purse is assaulted, demonized and raped day and night and stigmatized as a den of doom and money laundering, of casino roulette where the poor people go to fuck and lose their savings, atrium of scammers, scoundrels and the like. This is the image that the average Brazilian has the bag. The evil and pulsating heart of capitals.
Nothing could be more WRONG!
It’s just the opposite!
I get angry with such injustice and such a stick face of those who condemn the bag and say evil, it is all the bastard that infests Brazil and prevents us from being a better country.
This blog is not political and I do not want it to be, so after this, we go to my stock market concept and that is what is closer to reality.
“The stock exchange is the greatest jewel of capitalism, a place where all are equal, where everyone is anonymous and can be free, is a place of equality and opportunities for all, where the poor common worker can become a partner of the wealthy banker Paying the exact same thing and having the same rights and duties, is the greatest democratization of capital ever seen on the planet and an excellent investment opportunity for all individuals. “
The greatness of the stock market concept is difficult to assimilate at first, but over the years and with much study and dedication you will begin to realize the good that the stock does for the world and for the individuals who invest in it.
Answering some questions:
Are the stocks exchange old?
There had already been stock exchanges since the middle ages, where small traders came together to form companies to perform certain activities in foreign trade and overseas.
What’s the stock exchange for?
The exchange serves to finance companies and in return gives the opportunity for anyone to be a partner of the companies. It is MUCH cheaper to fund your business by putting it in the bag than asking for a loan to a bank, the bank charges interest so high that you would not even be able to pay many times.
Has every country a stock market?
In the advanced capitalist economies we have many countries with stock markets:
China, USA, Canada, Australia, England, Israel, India, Mongolia, Indonesia, Philippines, Japan, Germany, France, South Africa, Chile, Argentina, and Brazil just to name a few have active grants every weekday of the week.
What can I do in the stock market?
Basically you, ordinary human being, the ordinary worker, anonymous mortal dead, can do two things on the Stock Exchange: being a good business partner or doing TRADE. This blog will address only the first side, that of the partner. To do TRADE it takes a lot of studies, experience, dedication, years in the market and some money to take risks, but nothing prevents you from doing both at the same time, which I do not tell the amateur investor. Traders do not hinder the life of the partner and the partner does not disrupt the life of the trader, they can coexist peacefully and harmoniously and one does not lose or earn money from the other.
Why do not people I know invest in the stock market or distrust it?
Out of pure ignorance. Ignorance is an evil that plagues humanity, people have many concepts and opinions without the least practical or theoretical basis to emit them and so they lose many opportunities to invest or to keep quiet.
Do I need a lot of money to invest in the stock market?
No. You can invest as low as 100 reais a month, with no obligation to put more money or to owe. You put your money wherever you want and when you want, and also take whenever you want. No one will call you from the bag to fill your bag.
How do I invest in the stock market?
First, you have to study, read, watch videos, buy books. Nothing too much, you do not have to be an expert or super intelligent, you do not have a course and you’re doing calculations every day and every time you just have to know how to do the 4 basic math operations and be literate.
In the stock market, the doctor, the engineer, the businessman, the student and everyone has the same chances. It is not because you are a physicist, mathematician or engineer that you will win the scholarship, in fact, this can even disrupt more than helping. The average, average investor may have and actually HAVE the same odds of people with a college degree.
To invest in the stock market you need to become a BROKER. It can be independent or from your bank. Independent brokerage firms are generally cheaper and better off than the big brokerage firms (BB, Bradesco, and Itaú).
I advise at least 6 months of studies, books, videos and classes on the scholarship to put some money.
How can I study to enter the stock exchange?
You need to study and understand what we call “Fundamental Analysis,” basically that. No need to be an expert. You just need to learn the concepts and apply them, the basics even, little by little and every day you can learn something new but the basics are relatively simple and fast.
Is the stock market a guaranteed investment?
Well, imagine the nearest bakery in your home. Imagine that you are the owner’s friend and that he is your door neighbor, one fine day you meet him and he offers you membership in the bakery. Is this investment guaranteed?
The same thing is with the bag. You need to know a little about the companies that will buy. There is no guaranteed investment, this is practically a scam, you will only get a return if you risk your money on some business, that’s up to you to buy a hot dog cart and go sell snacks at a college door, you risk No one buys your bread.
Will I get rich in the stock market?
That question is very vague. Is it something like: I’m going to get rich selling coconut on the beach? Will I get rich selling cars? Will I get rich doing tattoos? Will I get rich by setting up a beauty parlor? It all depends on, everything. The good thing about investing in the scholarship is that you can continue to devote to the work you have and the scholarship does not bother you. If you want to set up a bakery you will have to devote a lot and this will surely interfere with your current job.
Understand one thing, the bag is not to WIN money, it is to SAVE money, only you will be compensated for it, the more you SAVE money in the bag, the more you will receive for it.
It is simple you earn money INVESTING in YOU, in your personal and professional formation, WORK, pay your bills and the money that remains you SEPARA to invest in the bag and also in other things if you want. The sellers of illusion live on making promises to make lots of money in the purse, get away from them.
What are stocks?
Stocks are pieces of business. The smallest possible chunk of a company. A stock represents an indivisible fraction of the company’s social capital. If you have an ORDINARY stock for a company, you are a member of it, it is YOURS too, you have the same rights and duties of the owners and controllers that also have the same action as you, including the right to vote at company assemblies.
The shares are bought and sold every business day of the municipality of São Paulo and their prices fluctuate throughout the day and years. The buying and selling of shares in a single day are called a “trading session”.
If a business is good and profitable why does the owner want to share it with anyone?
There are certain advantages in “opening the capital” of the company, transforming it into an SA (SA is a corporation) and selling its shares in the stock exchange, the main one is to take the money at ZERO cost and to finance its activities.
The opening of capital also improves the management of the company and attracts free publicity because the name of your company will always be in the news and in modern democracies, public companies tend to be better viewed than their private competitors.
Imagine that you have a lucrative bakery that works very well, but you want to open another, and the cost of a new bakery would be 1 million reais, just like the one you have. You can make $ 30,000 a month. You go to the bank and they say they will lend you the money at 15% interest a year.
Then only interest you would have to pay $ 15 thousand a month while waiting for the new bakery to work, it could be a step bigger than the leg and the new bakery would bankrupt, you would be indebted and paying interest alone which would be horrible. So what you do, sell half of your bakery for 1 million reais for a group of people (say 5 people each put $ 200,000 in the business) and set up another bakery.
Okay, now you have two bakeries of 1 million each, a total of 2 million, with 6 more partners, you’re going to get 50.01% of the stock and you’re the boss in the business. Did you notice that you sold half of your bakery for the full price? Business good huh? And that’s exactly what companies do, and they still do more, they sell their businesses for 10x the value of the company, 15x, 20x, and there’s still someone to pay, just to be a partner! That’s why they come in the bag.
How will I get my profit on the bag? What is the time for investment?
See, here is very important, the time for investment in the stock market is “FOREVER”, it is not long term, you will die with money inside the stock market, this is how you have to think, your equity inside the stock will move to Your children or spouses or whom you say in a will.
There is no such thing as making a profit on the stock market and then getting out of it. Think of the stock market as your bakery that you set up, it makes the profit, supports your family, has no debts and etc., when you are a sick old man and about to die what will make the bakery? Sell and put the money under the mattress? Of course not. You’ll leave it to your children. Ready. This is the period of investment in the stock market, the term is INFINITE.
And the money will come back to me like?
Basically, there are three ways to see the return on your money:
1- the appreciation of the price of your action
2- dividends received
3 – interest on own capital
The price of your share will reflect the PROFIT and organic growth of the company’s equity over the years. The company that always profits, will have the price of its action always going up, IN THE LONG TERM.
Dividends are a mandatory part of the profits defined by law that must be distributed to shareholders. In Brazil, the minimum possible is 25% of the profit if in case the company statute does not say anything about the dividends. Some companies pay less dividends.
Dividends are not toasted or fall from the sky, they leave the company’s cashier. In the example of your bakery with your partners, you will not be able to pay 1 million dividends to each one in a year because the bakery box will not have all that money. The dividends that fall on your account have already been taxed on your company’s profit and you will not pay income tax on them, they are already clean.
Interest on equity is a legal way for the company to compensate shareholders, they pay 15% of Income Tax already in the source and you will not pay extra tax for them, as they already come clean in your account.
Finally, the stock market is a magnificent opportunity for you to become a partner in big business and to enter the world of capitalism as an investor. Otherwise, there is no way you can go to the Apple store and ask to be a member of them, the only and quickest and cheapest way is to buy Apple shares.
In Brazil, we have more than 350 Brazilian listed companies, of which 50 are very good to invest and to be a partner. People often say that it is dangerous to get into the bag, I usually say that even dangerous is getting out of the bag.