Learn how to invest in stocks once and for all

Investing in stocks is like being a partner in a company. You put money waiting for an interesting return in the long run. Investing in stocks is not as complex as it sounds, but it is risky and not everyone can keep up with the swings – ups and downs – without being frightened. With high interest rates, such as those seen in Brazil, fixed income investments like DI funds are more recommended for those who do not like risk.

Already, for those who want to invest in stocks, there are diversified types of investment and analysts available to help with any type of investor profile, from the beginner to the most professional.

Check below all you need to know before deciding to invest your money on the stock exchange!

How does the stock exchange work?

How does the stock exchange work?

When a company decides to open its capital and become a Corporation, this company issues titles with the intention of selling them and raising funds that will be invested in machines, equipment, technology, contracting or any other type of investment that drives its growth. These properties are called shares and, if we analyze them individually, one share corresponds to the smallest part of a company. In order to start having its shares traded on the stock exchange, a company must register as a publicly-held company with the Brazilian Securities and Exchange Commission (CVM), a public entity linked to the Ministry of Finance and with the purpose of supervision and developing the securities market. The shares of the registered companies begin to participate in the trading sessions and can be traded at any time,

What kinds of stocks can you buy and invest?


Each share is presented on the stock exchange by 4 letters corresponding to the company name followed by a number that corresponds to the type of stock it is dealing with. Basically all actions can be divided into 2 large group:

  • Common Shares (ON): common shares grant their owners the right to receive dividends on a monthly or quarterly basis, and entitle them to participate and vote at the General Meetings of the companies. Common Shares may be recognized by inserting the number 3 in front of the four letters of a company, such as PETR3 – Petrobrás.
  • Preferred Shares (PN): unlike ordinary shares, preferred shares do not give their owners the right to vote, but in addition to paying dividends, the owner of preferred share is the first to receive financial compensation from the company in the event of bankruptcy of the same. Preferred shares can be recognized by inserting the number 4 in front of the four letters of a company.
  • Preferred Classes A, B and Unitary: the group of preferred shares is further subdivided into three other groups. Preferred Class A are recognized by the insertion of the number 5 in the acronym of a company and mean that the company pays a minimum dividend. Class B preferred shares are identified by the insertion of the number 6 in front of a company symbol and indicate that the company pays a fixed dividend. Finally, the Unitary Preferences correspond to a group of special shares that are only traded together. These actions can be identified by inserting the number 11 in front of the acronym company.

How to Invest in Stocks


An investor can choose 3 different ways to invest in stocks:

  1. Investment Fund: an investment fund is made up of several investors, each of which owns a share corresponding to a percentage of the total number of shares managed by the fund. Each fund has its own rules and regulations, but all, without exception, must be managed by a competent CVM manager.
  2. Investment Clubs: In these clubs, any group of people can organize and invest in shares collectively, but unlike the Investment Funds, there is no need for a CVM-accredited manager, only one representative of the club is required to issue the shares. purchase orders. (Here, just as in the previous Investment Fund topic, gains and losses are divided among all investors in proportion to the size of their holdings in the Fund or the Club.)
  3. Individual Investment: the only form of direct and individual investment in the list, in this option investors take all the bonuses and burdens of their investments in full, making all the decisions and issuing all the purchase and sale orders. It is worth remembering that an investor can always rely on the market analysts of his brokerage firm, gaining valuable knowledge and information before deciding to carry out any transaction.
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