By: MASTER INVESTMENT BANK How does the stock market work? Banco Master de Investimento explains to you

Doubts about the stock market are very common among novice investors. Do you want to invest, but don’t know if variable income is for you or are you afraid of life?market volatility? Paulo Gala, chief economist at Banco Master de Investimento, uncomplicates this universe and teaches you the first steps to becoming a Stock Exchange investor.

“The first thing to be aware of is that, when you buy a share, you are, in fact, buying a piece of a company”, he explains. Therefore, it is imperative that investors research the companies in which they are going to allocate their assets.

“You become a partner in this company. You will benefit from her success, if she has it. But it can also go wrong if it fails. It is this head that you need to have to invest in companies. In summary, investing in stocks is ideal for those who like to sniff out good deals,” explains Gala.

Shares are considered a Variable Income product, that is, the risks are great as they are susceptible to market volatility. Protecting your portfolio from possible losses is essential, and diversifying may be the best way.

“It’s always important to diversify, but you have to be careful with both extremes. Putting all your investments in a single stock is not recommended, but there is also over-diversification, when your investments are spread out and without focus. The ideal is to build a strategy with varied actions, but with some logic”, warns Gala.

The shares available on the Stock Exchange are those of companies that went public. In other words, companies that at a given moment decided to capitalize and opened up to the entry of thousands of new partners, making their shares available on the market. The resources from this operation enter the company, which from then on has cash in hand to finance its growth.

Interested in investing in stocks? Open your account on the website of Master Corretora. It offers personalized service and a highly qualified team to help you find the solutions that best suit your investor profile and build a diversified investment portfolio.

Simple is fast. To start investing consciously and planning your future, just a few clicks are all it takes.

Source: CNN Brasil

You may also like