What are Stocks?
Stocks are pieces of a company traded on the Stock Exchange (B3 in Brazil). When you buy a stock from Petrobras, for example, you become a minority shareholder of the company.
How to make money with stocks
- Appreciation: buy cheap and sell more expensive
- Dividends: receive part of the company’s profits
- Interest on Own Capital (JCP): similar to dividends, with different tax treatment
Risks
- The price may fall (you may lose money)
- Companies can go bankrupt
- High volatility in the short term
For whom is it indicated?
Stocks are indicated for those who:
- Already have an emergency reserve
- Have a long-term horizon (5+ years)
- Accept fluctuations in the short term
- Want returns above fixed income
How to start
- Open an account with a brokerage firm (XP, Clear, Rico, etc.)
- Study companies before investing
- Start with a little (R$ 100 is already possible)
- Diversify across different sectors