A publicly traded company shares fractions of its ownership. Any investor can buy this SHARE OF STOCK at a Stock Exchange, becoming a business partner.

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Presentation transcript:

A publicly traded company shares fractions of its ownership. Any investor can buy this SHARE OF STOCK at a Stock Exchange, becoming a business partner of the corporation. Advantages: For the owners: For the investors:

COMMON stock: Voting rights (business meetings) and dividend payments. Attract most individual investors (EUA). eg: PETR3 PREFERRED stock: Priority claim to company profits. Attract most minority shareholders (BRA). eg: PETR4

RISK (systematic or not) LIQUIDITY (blue chips) APPRECIATION and DIVIDENDS CORPORATE GOVERNANCE (accountability) Hedger x Speculator

How to overcome the indexes? LEVERAGE: the technique to multiply GAIN and LOSSES. OPTION: contract between two parties for a future transaction on an asset at a reference price. FORWARD CONTRACT: contract between two parties to buy or sell an asset at a specified future time at a price agreed today.

Formed in 2008 by the integration of “Bolsa de Valores de Sao Paulo” with “Bolsa de Mercadorias e Futuros” Are negotiated assets of almost 600 companies and some commodities.

FUNDAMENTAL analysis: involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets. TECHNICAL anaysis: security analysis discipline for forecasting the direction of prices through the study of past market price and volume.

Dow Theory: “the future repeat the past” The Market Trends