Stocks, stock market, investment, stock index. All these terms excite us because they sound like profitability, money, profits. How to know when to invest in the stock market: Step by step, we will talk a little about them.
How to know when to invest in the stock market
First of all, it should be known that a person on their own account is not authorized to buy shares. It becomes necessary an intermediary agent, can be an agent or stockbroker. Also a stock company.
If the opportunity arises to buy shares abroad, a trader located in that market is required.
Once the relationship with the agent or stockbroker begins, it is time to open a client account. This is a stock account in the market where you will operate.
said account It is opened by the broker, in the Stock Exchange. It is in the name of the buyer and represents as a notary or notary, because certifies the buyer’s ownership of a number of shares of certain companies.
then it should enable the fund collection account. The client of the Stock Exchange makes the money deposits. The amount will be the one you want to invest.
When you decide to make the sale of the shares, the payment will be deposited in this same account.
It is worth clarifying that All transactions related to the investments made will be registered in this account.
Even though the investor requires the intermediary agent to invest, it is he who Gives indications of where the investment should be made.
so it is very important and essential, keep up to date on the Stock Market prices and manage the stock indices, for example, Merval, Nasdaq or Bovespa.
Step by Step
To invest in the purchase of shares or some other financial instrument, the following steps must be met:
- Select an intermediary, agent or broker
- Opening a principal account, where all investment transactions will be recorded and will be managed by the intermediary.
- You can start sending buy and sell orders to the stockbroker we have hired.
- Once the order is received, the operator executes it, through the systems or platform enabled for trading.
- In case of having invested in shares, they will be credited within 48 hours, in a sub-account arranged in the name of the investor in the Caja de Valores. This box is the one in charge of being the depositary of the securities.
- If it were the situation that the investor sells the shares. These will be withdrawn from the aforementioned sub-account and the resources obtained from the sale will be deposited.
- Generally, the Caja de Valores places at the disposal of the principals, the online summary of their assets or holdings.
What is the stock market
A stock exchange is a private organizationwhich is intended offer its members the greatest number of facilities, to satisfy the requests made by their clients.
That is, enter orders and carry out purchase and sale negotiations of values. Among these values, we find the Actions of corporations or corporations, the bonds public and private, certificates, participation titles and a vast list of investment instruments. rehearsal
In Argentina, we have the Buenos Aires Stock Exchange (BCBA), also known as the Buenos Aires Stock Exchange (BASE). It is a non-profit civil association.
It is administered by people representing different business sectors.
The National Securities Commission is the institution that supervises the Stock Markets
This ranked as the largest stock exchange in the nationbesides being the main business and finance headquarters.
In general, the operations carried out there are basically with the shares of the most important national and foreign multinational companies, as well as bonds, currencies and futures contracts.
Its foundation dates back to 1854, specifically on July 10, so It has more than one hundred years of successful operations.
They use as performance indicators the Indol and Wholesale Indol indices, Burcap, , General Stock Market Index, Merval and MAR, all of them enjoy excellent credibility in the area.
As a way to maintain the solidity and confidence in your transactions, all companies that wish to offer their shares to operate on the Buenos Aires Stock Exchange, mandatory and quarterly, they must report on their accounting situation and submit all relevant information.
Among his activities financial control, may suspend the listing of securities, as prevention of an abnormal variation in prices.
There are other Stock Exchanges in Argentina such as the Córdoba Stock Exchange and the Rosario Stock Exchange.
Options to invest in the stock market
In the stock market, You can invest in various sectors, such as agriculture, steel, hydrocarbons, banking, public services, construction, chemical products. Also in audiovisual media, editorialsand stop counting, there are diversity of sectors.
To make the decision in which to invest, although it is not necessary to be a specialist in the stock market, it is necessary to handle information on the fluctuation of the value of the shares of the companies, also of the stock indices.
In general, on the economic/financial behavior of securities and the factors that may influence the local and global market.
As you can see, being an investor is not that difficult but it is not easy either. In addition to what was mentioned above, You absolutely have to have money, with a strategy. And very important, with the desire to take the risk of diving into the sea of investments, surfing its waves and not letting yourself be overcome by the currents.
In the end, in addition to financial profitability, you will get experience.
How to buy shares
It is important to know that in order to buy shares through the Stock Market, knowledge and obligations are required to comply. For what is necessary hire a person specialized in the area, known as a stockbroker.
This negotiation agent must be authorized by the National Securities Commission.
will be the intermediary between the person who wishes to invest and the stock market, Therefore, it must have a membership in the market that is registered, authorized and regulated by the Commission.
how much money is earned
The investor having bought shares of a company becomes the owner of a part of it.
To the extent of possession of the shares, obligations and rights are generated as a shareholder.
Among these rights we find the dividend collection.
To explain better, suppose that a company generates profits during the financial year. The Board of Directors, based on the internal regulations, decides that these profits can be distributed among the shareholders, in the form of a dividend.
What are they represented in national currency by the percentage that is stipulated for each share.
In addition to receiving dividends, as a shareholder, You also have the right to vote. In the various agreements that require it for the dynamics of business operations.
Also as a shareholder you earn the right to demand certain information about the company and the decisions that could influence its ownership.
It is worth highlighting that The investor must be very clear that investing in shares can result in a profit in the medium and long term, as well as being variable.
But it is also very valid, that They can be sold at the time you consider appropriate, it can be based on the liquidity of the market at certain times.
We hope that this information has clarified some definitions so that the investment is safe. It only remains for us to wish them good luck.