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ARTHUR REIS THE STOCK MARKET
ARTHUR REIS
THE STOCK MARKET
WHAT IS A SHARE?
• A publicly traded company shares fractions of its ownership.
• Any investor can buy this SHARE OF STOCK at a Stock Exchange, becoming a business partner of the corporation.
• Advantages:For the owners: For the
investors:$ $
TYPES OF SHARES• COMMON stock:
Voting rights (business meetings) and dividend payments.Attract most individual investors (EUA).eg: PETR3
• PREFERRED stock:Priority claim to company profits.Attract most minority shareholders (BRA).eg: PETR4
SOME CONCEPTS
• RISK (systematic or not)• LIQUIDITY (blue chips)• APPRECIATION and DIVIDENDS• CORPORATE GOVERNANCE
(accountability)• Hedger x Speculator
WAYS OF QUICK PROFIT• How to overcome the indexes?• LEVERAGE: the technique to multiply
GAIN and LOSSES.• OPTION: contract between two parties
for a future transaction on an asset at a reference price.
• FORWARD CONTRACT: contract between two parties to buy or sell an asset at a specified future time at a price agreed today.
STOCK EXCHANGES
http://en.wikipedia.org/wiki/Stock_exchanges
BM&FBOVESPA
• Formed in 2008 by the integration of “Bolsa de Valores de Sao Paulo” with “Bolsa de Mercadorias e Futuros”
• Are negotiated assets of almost 600 companies and some commodities.
STOCK MARKET INDEXES
STOCK MARKET INDEXES
https://www.agorainvest.com.br/cotacoes/default.asp
SCHOOLS OF INVESTMENT ANALYSIS
• FUNDAMENTAL analysis:involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets.
• TECHNICAL anaysis:security analysis discipline for forecasting the direction of prices through the study of past market price and volume.
TECHNICAL ANALYSIS
• Dow Theory: “the future repeat the past”• The Market Trends
BUY
HOLD
SELL
GRAPHS
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ARTU3
ARTU3
GRAPHS
GRAPHS
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