First Steps
Where to start?
There are three main ways to invest in shares:
Individually
To invest directly in the stock exchange it is necessary to trade (buy or sell shares) through a brokerage firm. As a first step, it is necessary to register with one of the stockbrokers accredited by the stock exchange. The list of stockbrokers is available on the website of the Stock Exchange itself.
Through an Investment Club
A group of individuals meets and finds a Broker to set up an Investment Club. In this case, a representative of the Club maintains contact with the broker to forward decisions agreed upon by the participants.
Through an Investment Fund
The investor buys quotas of a share fund, administered by a brokerage firm, a bank or an independent Fund Manager, who has authorization from the CVM.
How much money is needed to begin?
There is no minimum amount required to invest on the Stock Exchange. This varies depending on the price of the shares that you want to buy and even the broker you choose. In the case of Funds and Clubs, they usually have a minimum value for entry or trading.
How are shares traded?
The investor transmits his or her order to buy or sell to the broker of which they are a client. The brokerage company, through its operators, places the order in the electronic trading system of the stock exchange. If there is another order of equal size, in the opposite direction, the deal is closed immediately.
What happens to my money if the brokerage company goes bankrupt? Do I lose my entire investment?
When purchasing a share, it stays in your name and is held in custody in the CBLC (Companhia Brasileira de Liquidação e Custódia). Therefore, in the event of any problem with the brokerage firm, you will not lose your shares, much less your investment. The share is a security which confers rights and obligations only between the investor and the company in which the former has decided to invest. The broker merely acts as an intermediary for the share trades.


