For some years now, the number of investors in Brazil has been growing and interest in the subject has been gaining new proportions among the general population. Little by little, the misconception that investing is an exclusive activity for the rich is ceasing to exist and more and more people are actually investing, even if it is only 100 reais a month.
It is important to point out that in addition to savings, much is said about invest in private pension and in actions.
The second option is still the source of many questions and debates, especially among those who are starting to invest now. Surrounded by myths, the stock Exchange it may seem like a seven-headed animal to some.
Therefore, many people wonder whether or not it is worth investing in stocks, after all, there are so many stories that those who still do not have in-depth knowledge of the subject end up getting lost.
Therefore, we have selected here important information that will help you to better understand how this investment works. Check it out now and understand everything about it. Enjoy!
What this article covers:
After all, what is investing in stocks?
Even though it is the most popular type of investment in the world, there are few people who really know what it means. Widely spread by movies and series, the stock market has become a big taboo when talking about finance and investments.
Despite this negative view that many people still have, investing in stocks is something very simple and that can fit into the daily lives of many people.
In the United States, for example, almost half of workers invest in the Stock Exchange. Contrary to what many Brazilians think, investing in stocks is not difficult.
To achieve the dreamed financial independence, it is necessary to have access to quality information.
What you see a lot on the internet are supposedly successful cases that promise easy and fast money when investing in the stock market. However, the first lesson you should take away from this is: there is no such thing as quick and easy money.
What are actions?
In a very simple way, shares are representative parts of the capital of a certain company. This means, then, that when buying shares you are becoming a partial partner in a company, the more shares you have, the greater the percentage of the company.
When it comes to the stock exchange and large companies, the total shares of each company are in the billions, making each investor an owner equivalent to 0.001% of the total. However, when it comes to multinational companies, even small percentages mean considerable amounts.
Advantages of investing in stocks
Now that you have a better idea of what stocks are and how they are traded, it’s time to learn about the positive aspects of choosing this type of investment.
Ease of access to various businesses
As we saw earlier, access to large companies is very easy in the stock market.
In this way, virtually any investor has the possibility of becoming a partner in huge companies precisely because of the ease offered by this type of investment.
With a relatively low amount (R$ 100) anyone can become a partner in a bank or a construction company, for example. Just buy one share of each company on the stock exchange and receive your share of their profit. Thus, investing with little capital, you can receive dividends from large organizations thanks to your shares on the stock exchange.
protection against inflation
Another important advantage for Brazilians is the inflationary protection offered by shares. Simply put, companies are the triggers of the inflationary process, through price increases.
Therefore, when buying stocks on the stock exchange, you manage to stay protected from the capital devaluation process. If the investment were made in fixed income, for example, the money would naturally lose its value over time.
Another important advantage is the high financial liquidity that stocks have. This is a widely used parameter to measure the ease of converting an investment into cash.
This means, then, that investing in stocks allows investors a great deal of convenience to redeem the money invested plus their income.
Disadvantages of investing in stocks
Although the advantages presented are quite attractive, just like any other investment, shares also have negative points. It’s important to know them to put them on the scale and decide whether this type of asset makes sense for your reality or not.
Certainly the main disadvantage of this investment is its high financial volatility. This is because, given the speed and volume of securities traded in a short time, prices vary very quickly according to supply and demand.
Another important negative point to be mentioned is the uncertainty involved in this type of investment.
Unlike fixed income, there is no guarantee of profitability when investing in the stock market. This means that, when buying a stock with the expectation of gain, you may end up frustrated with the investment.
Thus, it is possible to see that, like all investments, stocks have their negative and positive sides. To decide whether it is worth investing in this asset or not, it is necessary to assess its reality and priorities. By defining your investment goals, it will be easier to understand whether stocks are right for you or not.