What are actions? Shares are the smallest part of the capital stock of companies and corporations. They give the rights and duties of a partner over a company, limited by the powers of these actions. Understand how they are bought and sold.
- How much does savings yield?
- What is Treasury Direct?
If a person says he owns 1% of a company as a shareholder, then it must have the amount of shares corresponding to 1% of the company's total shares. Stocks can also be called papers. They are traded on the Stock Exchange.
How are these shares born?
Investment rounds are a form of fundraising. Usually, they are used by companies in their beginnings. The objective is to raise money to start operations. Startups and fintechs have used this modality a lot.
Investment rounds are not loans.
Investors become partners, exchanging money for part of what the company will become. These investors are called “venture investors” as they bet on the future. In addition to financial assistance, startups use the investor's expertise.
The first round of investment is to start the MVP (Minimum Viable Product). New rounds of investment can be made to expand the quality of the product or to tread new paths for the company. When the company is more robust, it can go public on the stock exchange, traditionally known as an IPO.
IPO (Initial Public Offering)
Companies looking to put their shares on the market can raise large amounts of money for growth at once. The process takes about 10 weeks.
The first step is the creation of the pinitial project (opening convenience analysis, choice of independent auditor and choice of lead coordinator ). Next, you need to identify the area where cash flow can be increased. Then comes the bureaucratic documental part: documental project; file a request with the CVM (Brazilian Securities and Exchange Commission); request inclusion in the B3 listing (Brasil, Bolsa, Balcão).
We are starting the amarket notice on opening. We start the process of rreserve (invest X amount of money to reserve the purchase of part of the company, before there are shares).
How does the company know its value? Bookbuilding is the stage that analyzes the company's fair price, made by external investors together with the team responsible for the IPO process.
With the CVM registration, we arrive at the last part of the process. Liquidation or auction of the remaining shares on the stock exchange. Finally, the closing of that company's IPO process is announced. It is now an asset to be traded on the local stock exchanges.
How shares are bought and sold
- Can only be bought and sold, publicly, shares of companies and companies registered with the CVM;
- Shares are held in deposit accounts with the names of the holders, no certificate issuance;
- Who maintains these accounts is the company designated to provide this service;
- Proprshare ownership is evidenced by statement statement;
- Always nominative, may not be issued and traded in bearer securities or endorsed.
Shares are bought and sold by their owners with the aim of profiting from the variation in value, demand and interest of the stock exchange traders.
More info: CVM